Snowline Gold Corp V.SGD

Short-Term Expectations / Predictions

[AlwaysLong683]

People posting on this BB are free to pump or (respectfully) critique SGD as all those who either participate or simply read the posts here ultimately have to make their own decisions (or realize this type of investing as a whole is not appropriate for them). However, I think many get too excited too fast, engage in potentially harmful practices and self-inflicted wounds like confirmation bias, and can lose perspective when evaluating a given company before a purchase decision (or re-examining the company post-purchase). 

When someone makes short-term predictions on junior gold explorers re. share price, how good anticipated upcoming assay results may be, how markets will react, etc., they are speculating regardless of whether they think of themselves as investors in companies.


Here are a couple of things I like to keep in mind when contemplating a purchase or reviewing a company post-purchase:

Like a stock.
Love other people in your life or your dog.
Common shares in any company don't care about you or even know you exist. Same with company management and the BOD (unless you are close personal friends with one or more of them).

Give unbiassed consideration to valid opposing arguments / tough questions about the company,. Don't solely focus on those who act as head cheerleaders, many of whom may have a vested interest in seeing the share price bid up as others come on board and invest in the name,
You may decide to invest (or hold on to, or buy more) shares anyway, but I like to be very selective in the names I pick, and there are deal-breakers for me when evaluating comlpanies which may nonetheless end up being a very profitable investment.. A good example of a quality exchange that is worthy of one's time in my view if interested in SGD is an interview with SGD CEO Scott Berdahl conducted by the "Resource Talks" host. These are the types of Q&As where you can obtain information and assess the pros and cons of an investment idea if you are able to remain objective about the name, then give it the weight you feel it deserves based on the merits of what was asked/discussed, not pre-conceived biases that make you suseptible to tunnell vision about a company's prospects.


As I've stated before, investing in any stock involves risk, and in the case of junior explorers, significant risk. Thus, I believe it's all the more important that one does an honest and thorough job investigating a company and examining the facts (pro and con) and realize you have no way of knowing in advance whether a company will be sold, how much per share it will be sold for should that be the the case,  when that will occur, etc. These things are out of the control of small investors and will be determined by the big boys both at SGD and by those who call the shots at other precious metals companies.

Investing to me is about probabilities, and the more honest I am with myself about how likely a company will eventually become a winning use of investing cash and how much risk I have to accept to obtain a good outcome, the better my ultimate returns will be.