Metanor Resources MEAOD

RE: Thanks for the posting.

[DetVicMackey]

I got out of OGC in the mid 3.50s because its valuation when I sold it was close to fair value on a comparative basis. There were some issues that concerned me at the time. A couple of its mines nearing depletion, higher cash costs from a strong Aussie dollar, Dipidio was still in limbo, and the Aussie super tax. I must say though, the recent decision to proceed with the Dipidio project and closing financing for it makes the company attractive again, but I don't think the upside is as great as many of my other picks relative to the amount of risk.

My stake in CUU is worth just 1.29% of my portfolio so I don't really follow it much. Teck most likely will claw back at least 25% but the insiders, who bought up a boat load of shares in the open market, believe they will get bought out at higher prices. Of course there is a lot of risk associated with the upcoming feasibility study so buyers beware. If the FS is as rosy as many expect, then why hasn't the SP reflected it in the past months? I guess this would qualify as my only spec stock since I don't really have an upside or downside target.

Nothing wrong with laggers unless fundamentals are bad and warrant SP weakness. Valuations in many companies are indeed catching up to their peer group and higher gold prices. However, there are still a few gems that are still waiting to be bid up to get to similar levels. I would rather sell an AVR or OGC a little early and reposition the funds into the next multi-bagger since there is a better risk-reward setup by my calculations.

The precious metals market is small relative to the entire stock market and incredibly tiny to relative to the bond market. All PM stocks have room to further spike upwards when more money comes flooding in. There will be a mania much like the tech and real estate bubble that will propel PM stocks to ridiculous valuations and thus signaling a top. Yet this may not mean PM investors are getting a "real" return since inflation could be well into double digits. It's not about making money, but more about protecting your purchasing power and losing less. Stagflationary depression looks to be the end game. Everyone should own some bullion because it makes for a great insurance policy against paper and digital currency.