RE: are people confused?Juniors not seeing benefits of soaring gold pricePosted: March 13, 2008, 8:51 AM by Jonathan Ratner MiningThere is a growing chorus of analysts – and investors most likely – whofeel that share prices of small cap gold companies do not adequatelyreflect spot gold, which climbed above US$996 per ounce on Thursdaymorning.Bullion has soared more than US$150 so far in 2008, and is up more thanUS$340, or more than 50%, since last summer’s low. But very few of thesmaller cap gold stocks have seen material movements in the past sixmonths, Michael Curran at RBC Capital Markets said in a note. In fact,you have to look back to early May 2007 when gold was at US$688 to findthe 52-week high for many names, the analyst noted.Who is getting all the love? Large-cap and more liquid names likeBarrick Gold Corp., Goldcorp Inc., Yamana Gold Inc., Kinross Gold Corp.and Agnico-Eagle Mines Ltd. Even the streetTRACKS gold ETF has donebetter than most juniors.One of the reasons this may be happening is liquidity. “New investorsinto the sector typically look to more liquid names as their initialforay, thus favouring larger cap producers,” Mr. Curran said.Concerns linked to rising costs may be another, since junior golds maybe experiencing financing challenges. This can lead tohigher-than-expected dilution, an increased reliance on debt, and aless-attractive profile in terms of potential takeovers, the analystsaid.But “the combination of neccessity and opportunity could result inindustry consolidation,” he added, which may mean those junior goldswith large resource bases get snatched up by larger producers.Mr. Curran’s favourite juniors are Anatolia Minerals Development Ltd.(top pick), which operates in Turkey, Andean Resources Ltd. inArgentina, Banro Corp. in the Democratic Republic of the Congo, GoldReserve Inc. in Venezuela, Greystar Resources Ltd. in Colombia andOsisko Exploration Ltd., which operates in Quebec.Jonathan Ratner
sorry about reposting this a bunch of times but its important imo
Margin calls are hitting the institutions so they're not involved in these jr's we like to spec on but they will come back its just a matter of time. so for once we have the option to beat them at their game and load up at cheap share prices jmo