the basic model donum

I maybe came across a teeny weeny disinterested in your basic model of fundamental investing. Primarily because Ive always associated technicals with timing of entries and exits and what happened in between of being no import literally. Being involved with the development of a miner from float to a mature producer must give you, and anyone else, an overall sense of accomplishment when all the hard work of examining the data pays off spectacularly.



So to start at my first stage of understanding the basic model - if you see fit: The Company acquires the asset.

- what process do you use, if any, to sort out a half decent list of possible companies that would warrant a detailed prior examination.
- at what point do you get on board - prefloat or post float.
- what would be some of the financials you would want to run your rule over before you took a stake.

- is there any criteria you would have or use to exit if the asset wasnt developing to expectations in this first stage prior to step 2.

- how you would weigh up the long term viability of a project.

eg Taking AIM as a possible case when it was to all intents and purposes a real basket case trading around the 2-3c mark in 2003 zinc inventory stocks were around 600000t selling at 40c/lb. Contrast that with todays inventory level 72000t selling at 173c/lb. Wouldnt it be a tough call to buy in when zinc inventories were high and prices depressed.

My chart data on AIM goes back to 1992 - In those early years AIM traded at times well over the $2 mark. Has AIM had any significant capital raising or otherwise dilution of stock over the years to account for the reduced value.


1)The company acquires the asset.

- market cap floats around single to teen millions,with the usual trader induced spike on the annmnt as Ive reffered to in previous posts.