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Southern Arc Minerals Inc V.SA.H

Alternate Symbol(s):  SARMF

Southern Arc Minerals Inc. is a Canada-based company. The Company is primarily engaged in the project generation and investments in mineral resource companies with a focus on gold and copper-gold. The Company operates through the acquisition and exploration of resource properties and investments segment. The Company has not generated any revenue.


TSXV:SA.H - Post by User

Bullboard Posts
Post by vwigon May 20, 2010 10:56pm
402 Views
Post# 17120459

Opportunity Cost.

Opportunity Cost.That's the issue here.  The point of "no return" (no pun intended) makes an investment like this questionable sometimes.
One has to wonder where this opportunity cost lies for each individual.  Let's say that SA would move to it's last high......at this point, the cost of having held it for more than 4 years does not cover my opportunity cost, as many other juniors may have given me more return than that in the last 2 years alone.

That opportunity cost makes the return required to cover it much higher every month that goes by. One has to consider this as a part of the equation. Every week that goes by, other investments are allowing us to take profits and book them.  High risk and sepc investments like this are not something I like to hold for 5 years without seeing substantial movement. Now, that in itself is one issue.  Add to that the fact that this is an exploration company that is not exploring and has no more cash left to do so, and the cost goes up substantially once again, because it adds to the time necessary to correct these issues.

I personally do not think that as soon as the Perda is signed, this is going anywhere fast. There is still much work to be done on the properties, and drilling takes time, as does the obtaining of results.

now, if there is a deal in the works, and a JV partner can be found for one of the properties, then that changes the outlook.  If the Pelangan results are released rapidly after the Perda is finalized and they are good as we expect them to be,  then that also changes the picture a bit.

Until any of those events happen, my view is that the opportunity cost continues to rise rapidly, and for some, including myself, will soon reach that critical point. Although I have some good coin in this one it is not my only spec stock, but it is the only one that has made me wait 5 years for some manner of tangible return.  The longer I wait, the more return I will need to see. There will soon come a point where I will not believe that the return will match the wait, and I'll have to  bow out. Simple math. Can this move to the point where we will be satisfied with the return, knowing that the level must cover the time we had to wait for it?  I don't know yet............I'm still hoping it will and I continue to look at other plays where the rise has been substantial and I realize that if SA does the same, we'll be covered.  I also do know that if it does not happen soon, then I certainly will not be satisfied with the return, even if we get a 5 bagger from this point on. That will not cover the opportunity cost in my view if we are to wait months longer.

to each their own........this is how I see it.


vwig.
Bullboard Posts