TSXV:NORA.H - Post by User
Comment by
Francesco1on Feb 09, 2006 8:30pm
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Post# 10340667
RE: MS tonight
RE: MS tonightcanon5,
The junior resource stocks remain in a corrective state.
This group has been through a severe "correction" for several years.
The larger more established mining equities have faired better because the rise in the underlying commodity prices go directly to their bottom line. These stocks are in a resuming bull market and are always the first to respond bullishly in a new commodity bull market.
The juniors however trade early in a new bull market on speculation, hopes and dreams. However, this group will come alive after the equities of the more established mines begin to wane and profits start to be taken. This money has to go somewhere and it always goes into the more speculative issues.
When the new bull market in the juniors really gets going the gains that we will see in stocks like Orko will make your head spin.
They will become extremely over valued before it all comes to a grinding halt. I really believe that within the next few months the juniors will come alive with a vengence. Just make sure you own a basket of these stocks since gains of a few thousand percent over the next 2 years is not out of the question.
I have cut and pasted a small section of a post that I read a few months ago ... Check this out!!!
I read this back in July and I am still overwhelmed as to how high junior share prices went up to during the last major gold rush.
"Some examples were: Lion Mines - 1975 price $0.07 / 1980 price $380 YES that's right it's not a misprint you could of bought 10,000 shares of lion mines in 1975 for around $700 dollars and if you held on for the whole 5 years January 1980 you could have netted a total profit of around $3,799,300. Not bad hey!!!!! A few others were Bankeno - 1975 price $1.25 / 1980 price $430. Wharf Resources - 1975 price $0.40 / 1980 price $560. Steep Rock - 1975 price $.93 / 1980 price $440 Mineral Resources - 1975 price $.60 / 1980 price $415 . Azure Resources - 1975 price $0.05 / 1980 price $109."
Francesco