RE:I think some of the short term holders are not realisticPackerfan666 wrote: I am not an expert in mining nor in gold stocks. I bought this stock at 9 cents . I haven't sold or bought another single share I only have 250,000 shares . Here's what I know
1) Tim is great at what he does. I have emailed him several times and he has responded every time
2) The Results they just released were good. They weren't great, they weren't amazing but they were good. Everyone always wants every assay to be spectacular. That's not realistic . We have over 30,000 metres left to drill.
3) Ofcourse the share price is tanking. It has happen every time Solomon releases results . It has a run up and then results come and down she goes. This for anyone not new to Solomon should be the norm.
4) Penny Stocks are easily Manipulated, it's gone down on very little volume. Penny Flippers triggering stop losses and flipping back and forth between eachother to grind price down. It could come down more.
5) Why does everyone think buying properties is a bad thing. When you own a house , and get money to buy another house , do you say the first house is garbage because you want to invest in another house . Of course not . Adding properties to a portfolio is a good thing period
6) Enjoy the Ride: Sokomon is a Good Company and I am sure we will all be rewarded by the market eventually
I don't think an investor or other entity buying more houses vs. junior gold exploration companies staking claims to more properties is a good analogy.
Let's compare investing in one of more houses (over and above the one you live in) vs. investing in a junior gold exploration company which is staking claims to more and more land.
Unless you can afford to pay all cash for a house, you need at least a down payment plus good credit for a mortgage (debt) for which you must make monthly payments.
People who invest in additional houses often make the down payment and use rental income from tenants to pay down the mortgage plus accumulating interest, thus creating more net equity in the house.as time moves forward.
When they go to sell the house, they hope to make a nice capital gain on it, but even if they don't, because it's a house on land that you own (with related services like water, electricity, etc.), it will be worth something.
People who invest in junior exploration-stage gold companies are hoping that there's enough gold in the ground at a low enough projected AISC to mine the land, or prove it up to make it an attractive takeover target.
Unlike the rental income from a house, exploration companies don't make any money until they are pouring gold and selling that gold, which is a long way off and makes it hard for them to find a lender for debt (which they couldn't start paying back for years anyway). That's why the main vehicle for raising money for operations is to sell more shares at a discount (or units which consist of shares plus warrants), diluting existing shareholders in the process.
Staking more claims is not free. There's costs associated with doing so with each additioinal package you acquire with no guarantee that any money is going to be made on the property. Thus, you are paying the costs for the claims, making no income on the property, and hoping you'll find something you currently can't establish (amount of gold in the ground, grade, etc.) whereas you can see what you are getting with the house, as you can view the house and land, inspect it, etc. before you decide whether or not to buy.
Then there's the drilling costs. The more land you are drilling on, the more money is needed, which eventually usually means more equity raises and discounts to the current share price, perhaps more warrants along with those newly issued shares, and still no proving up of reserves. Thus, the more land you claim, the more costs you incurr. That's why, when it comes to junior exploration companies, quality trumps quantity, especially if. like SIC, your land packages are spread far apart from one another (unlike say, NFG, which can simply move their drills about on their huge single contiguous Queenway project).
Also, unlike a house, if you come up empty on a land package and abandon it because you decide it's not worth sinking more money into it for additonal exploratory drilling and no company will take it because you don't have anything of significance to show for your efforts, you are down both the costs of staking the claims and the drilling done on it to date with not a penny of income to show for it.
JMHO