RE: CRJ Opened 2012 @ 1.41 down -64% YTD yaponski - thanks for your thoughts on CRJ.
.
1. Sure if one is a TRADER and willing to sell sooner than 1-year +1-day and pay short-term capital gains taxes, sure CRJ might be a buy at some technical level as a Trade. That said, from a TA perspective I don't see any abatement of the selling here. In fact, from a TA perspective, if the price is going down and volume is increasing, it isn't time to be a hero and step in with buys. Have never seen any successful trader suggest buying into falling price on increasing volume! Good luck with that! Look for a true bottom to be put in BEFORE buying, unless one wants to take a haircut to start with?
.
2. I could not disagree with you more. Sure CRJ has some new blood at the mine, they added so many managerial positions one has to wonder what they were thinking by not having them sooner? Anyway, the mine site guys are a nice addition, but it is false utility (imho) to think that is what turns this company around. The mine site guys do not run the Head Shed and do not control the strategic direction or focus of the company. Those mine site guys aren't going to be negotiating a loan deal to cover the expiring debentures. The mine site guys aren't spending money on consultants to do a PEA at Amisk, nor drilling at Madsen.
.
But the "failures of management" have very little to do with Mine Site guys. McMillian has been around for 17 years and has failed to grow production, build cash and now finds himself in a tight financial position? If you can't make money with POG at 1700 you need to hang it up. Since 2005 there have been several times when margins in the industry were tremendously high and CRJ has not be able to benefit from the high margins. How many PPs, loans and gold swap deals have they done during that period and what do we have to show for it?
.
Look, if McMillian were a hockey coach with a 17 year loosing record, you think the owners would say - Oh, OK! He added some new players and recognizes his past mistakes... let's keep riding the coach? Heck, no! He would have been fired long ago! So why are investors so willing to make excuses for what appears to be a VERY weak management team? If you could hire anybody in the world, is this who you would hire to make you money?
.