Mega Precious Metals Inc MPRXF

naruto

[bedrocker]

Good for you getting in at 40.  I commented only because there has been so much outperformance vs the rest of the gold market and that was pumped here with no news behind it.  I have ABX and ELD and other jrs and have am noty surprised by a correction in the absence of hard news. Let the news come in and then let the stock go up.  It is vulnerable to a correction and no more - has good management and good bets - let the bets tell their story.

ABX it trading at a P/E of 12 (good EPS for any business) in a boom privce market for gold - hard to believe profits won't be up sharply next quarter with their profit margins well over $1000 an oz. But not being rewarded with all the direct vehicles (gold bullion etfs) around. When the bullion price talks (even interim) and then starts to come off, watch the switch to producers which will have exceptions profits at $100 or $200 or $300 or $400 under current price. Bullion holders would be showing losses every $ of the way down in a correction while producers still profitable to $500 an oz level.  Producers vs bullion etfs will have their day, and jrs with real ozs along with them.

But MGP appears a little ahead of itself unless there is breakthrough pending news - I thought the way it was moving there was on Headway, but doesn't look that way for awhile at least. Watch and wait - trying but fun to. It looks like the promo has got them through the summer doldrums pretty well so have a good base for the prime season coming up