Yup. With such negative sentiment let's join the crowd of gloomsters and sell out of all gold specs. rofl
I thought I'd post this before saying good bye to the PRE posters once again.
from http://www.resourceinvestor.com/pebble.asp?relid=40359
As poor as the action has been for mining shares relative to gold and silver, the miner indexes have blown the doors off the rest of the equity markets lately. However, the small, much more speculative and highly liquidity dependent miners and explorers well down the mining company food chain have just been murdered over the past four months or so.
Judging by the volume and tenor of email over the past few weeks and especially over the past few days a very significant amount of pain and fear exists right now in the markets for the little guys. A true buyer�s strike is on for them and historically that�s usually been a great time to be a stock vulture, hasn�t it? This report contends that we are nearing one of the best buying opportunities for small resource companies since the Great Gold Bull began in 2001-2002 precisely because of the ongoing speculative stock buyer�s strike.
Highly illiquid markets such as in Canada and the OTCBB where there are have-to-sell-now sellers (now even panic sellers in some issues) and very few buyers can make mincemeat out of otherwise promising junior miners and explorers. Lots of really promising companies now find themselves 50%, 60% and even 70% off their 2007 highs today. That seems especially true for those companies that have exposure to or explore for uranium which has sold off its highs in the $130s per pound but is still at a very attractive price (in the $70s) compared to a few years ago.
Illiquid markets can seem illogical for a period of time and the overwhelming selling pressure into weak buying pressure can and has made for exciting opportunities for the brave souls who put high risk money to work with the most speculative juniors. Buyer�s strikes are always temporary, but they can last much longer than we�d like so it pays to take a long-term view and only buy when able to wait for a full recovery.
The current buyer�s strike has been vicious and has already lasted longer than some investors could stand, but there may be light at the end of the tunnel. �By and large, the junior exploration and development plays remain moribund, although there was much more green on the screen today that I�ve seen recently,� Lundin wrote. �This may be an indication that excitement is once again stirring in the junior sector,� he added.
Well, maybe it may not represent excitement, but several very savvy long-time vulture-like contrarian traders this report corresponds with regularly have definitely been placing stink bids in large numbers for their favorite promising juniors over the past week. Are they early? If they are then probably not by much in price or in time. We�ll see. Got spec mining shares?
PRE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
