70% does not equal 70%First off let me weigh in on Dines. If there is a bigger egomaniac out there than J Dines, then that would be one heck of a big egomaniac. The problem with following Dines and most newsletter writers is that there are/were too many of you following him - in a bear market. In a bull market it'll generally work but of course even that isn't a piece of cake as there is a growing wall of worry the whole way up. Mass Psychology but could easily been called 'Move Over Muhammed Ali, I'm the GREATEST'.
Anyway I'm simply amazed at how so many investors are frozen at the wheel holding their penny crap when there are so many great values out there. I'm talking about real companies, not pie in the sky, that are selling at cash value or less. That have real CASH FLOW. That are great asset plays owned by Sprott that are not incredibly laden with debt. In this last category note that OILEXCO would NOT qualify as a good pick! TIM would NOT fit the bill. TCM would and is a tremendous buying opportunity as is QUADRA. Those that hold the STORIES do not need an anonymous poster pouring salt in their wounds.
The thing is a 70% loss in one's portfolio is not the same as someone else's, where the latter is actively trading to find REAL companies that have fallen just as much as the junk. It does not make sense to me why a Bankers Pete that has a billions barrels and is a producer found in most of Sprott's funds as a top 10 position would fall 80%, the same as pure JUNK. Coastal v.CEN has been absolutely hammered as well, not as much as some but this tightly held producer was delayed in getting equipment and is now producing from shallow off shore wells producing over 4,000 wells per day w/ NO WATER. Further they are guiding huge production increases for next year. Yet people are frozen with their sunk cost JUNK.
The one jr that I least understand is Troy selling at .60, which is a dime BELOW cash value and no debt or hedging, T.TRY. I've mentioned this give-away on some boards and there is absolutely no interest at all and the volume in TRY is horrible. I've gotten a few inboxes complaining about volume but for gripe's sake I didn't know they were buying in 50,000 pieces! At these prices, the volume will take care of themselves down the road, lol! If you can find something better than this, PLEASE inbox me!
"This is the cheapest value gold jr I've come across that has an 8 year dividend record and is trading at (Now UNDER) cash value. New mine fully constructed and commissioned; coming on at $300 US oz cost commencing early 09 - and iron ore that could/should reduce the cost to virtually nil. Permitting for iron ore fully expected, 43-101 in place, offtakes being negotiated - will only cost $5 million to get it into production. Plus a fully operating mill in storage and two other mills that are ending production at their mines in 2008/09 and must be worth something. Coal in Mongolia and a recent jv deal w/ Rio Tinto (just terminated, but not the prospectivity)." Now what the F am I missing and if interested go to the website and see the great, recent presentation. 8 years of dividends, for goodness sakes in Australia and Brazil, not Kazakhstan or Bolivia, lol!!!!!
In terms of PNP, I track the site keep a sense of sentiment and I like uranium and gold. When I researched PNP a year ago the thing that made me nervous was its use of margin. I haven't looked at it in detail but my gut suggests that the biggest risk is simply one of whether or not it has survivability issues. I do NOT know! What looks interesting is its leverage to many, many jrs. Of course that's what got many of you in and many of you staying in and it's been a heck of a discouraging ride. So, I'm not recommending one thing or the other w/ PNP but to look hard at the junk and make the painful decisions that you need to do in order to help pick up the pieces.