RE: contrarian.........The markets are driven by both fear and greed. Consequently, in the short term, they will often price things 'wrong', especially at the extremes of those emotional swings. Right now the junior resource market is obviously at the extreme end of negative sentiment, with many stocks trading at absolutely ridiculous valuations.
Something that Warren Buffet has talked about on occasion always comes to my mind in situations like these. What he says basicly is this: in the short term markets are 'voting' machines, subject to the prevailing sentiment, which is driven by emotion. But in the long term, markets are 'weighing' machines, and all investments will come to reflect their true underlying value in due time. Therein lies the opportunity to buy that 'value' at a discount before the masses recognize and reprice it.
In Exmin's case currently, I firmly believe its true 'weight' is at least 50% higher than the current SP. And that is based solely on the forward projections for their share of the Moris mine production, without any consideration for their massive land package and highly prospective project pipeline.
So in the context of an ongoing bull market in precious metals, I fully agree that Exmin is a wonderful contrarian play and screaming buy at current prices. The disconnect we are seeing between the junior explorers/producers and the rising POG and POS will not persist much longer IMHO. As producer after producer comes out with quarterly earnings reports in the coming weeks, the positive effect of rising prices on these companys' bottom lines will be difficult for the market to ignore.
Thus, I expect a radical repricing in this sector in the next 90 days...EXM should benefit substantially as well.
GLTA