RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Bob M and Rhino10allenbow wrote: Actually oldfx is right, Wallstreet1112. Unless your capital at risk has an expected and measurable ROI, it is not an investment. Investments can be measured as to return via a history of earnings, e.g. expected dividend from profits on earnings, retained earnings per share lifting price, interest from debt instruments, and so on. Something in which you place your capital into, aka a venture, which cannot be measured in terms of a return via earnings or a rate on loan amount that can be repaid, because there are no earnings to make a return, but might return a capital gain because of innovation or the nature of the venture, is a speculation.
NVO is a speculation plain and simple. Nothing measured; no profits, and no earnings. no cash flow from operations; and nothing really known conclusively ....
And I am in it as such. And incidentally very bullish on this speculation, and also because of contributions such as yours that allow me to understand better the nature of the geology, and that there is seemingly a lot of gold in these NVO tenements. Just cutting oldfx some slack even though to some I suppose I am splitting hairs but in truth, those are the definitions.
BTW, I thought your questions to Rhino10 were right on and very timely. Gave you 5 stars for them. And oldfx was wrong to disparage you for them. I hope to see Rhino10's reply here.
Cheers and thanks for all your contributions once again!!
Hi AB,
I personally don't see it that way. Every investment is speculation in terms of the future, so I don't really see them as opposites, and I simply see an investment as a speculation on value creation. Our swedish flagship Hennes & Mauritz (which was considered fail safe) has enjoyed decades of growth, but suddenly it stopped and the SP has corrected about 70% over a year or two.
Beta, like buying a non-growth gold company simply because I am speculating on the price of gold is the definition of pure speculation in my eyes since there is really no value creation inside the company behind it.
Therefore I see Novo as both speculation and an investment. I am investing in the value creation skills of all the people involved which also takes into account what I expect in terms of geology for them to unlock and such... ie investment for me is speculating primarily on the in house value creation skills/outlook, and a pure speculation is IMHO betting on external events. Of course, if I would buy a company and not do any DD it's pure speculation no matter what the in house value creation skills would be, so I guess I mean to say that I think that the degree of my definition of speculation varies from case to case and is rather subjective.
I don't know if I explained my personal views in a good way but at least I tried :).
Even though I don't agree with everything Rhino10 says, it would be foolish of me to not acknowledge he knows a lot more about mining and the aussie mining framework than me. I'm always open and keen to learn new things.
Cheers mate and thanks!