+ one cent up to 12 cents on a rocky day , page-36

One has to have an eye on risk/reward ratios. At current share prices CNQ's marekt cap approaches 30M AUD which tops the market caps of quite a few other prospective tungsten miners. Certainly CNQ deserves a bonus for being quicker than others and its ability to sell into high tungsten prices. Nobody knows exaclty where tungsten prices will be in one or two years time although there appears to be a broad based consensus of well supported prices, at least until some higher volume producers enter the market around 2014/15.

Just a couple of days ago this was a 10c stock. Without any news released since then, the stock advanced 30%-40%. This does account for a nice gain in our portfolios but accordingly the risk/reward ratio has become more ambitious. Should traders continue to take this stock higher without fundamental/news support, I will start to decrease my position and probably invest it in other prospective tungsten miners since I remain very bullish for the sector. Once the trader herd has lost its interest in CNQ and spit it out, I'll be happy to pick up the remains again. At 15c+ the market prices in a flawless production start already. Basically at such prices we are presented with an opportunity to sell the stock before the fact actually happens, thus avoid the risk of start-up problems, further delays, etc.

I very much like the guys at Carbine and their approach of doing things, the resource is excellent, the potential is huge and I am very optimistic the company will enjoy a bright future. But all in its proper time, please. One step after another. CNQ its not the only prospective tungsten miner and has to compete with other publicly listed companies for our money. At least for my money. At 15c CNQ stock is on the brink of getting ahead of itself IMO. The company would be valued at 33M then. You can buy shares of another prospective tungsten miner planning for 3x CNQ's phase 2 output, with >1% grade (agreed, depending on cut-off grade) for just 12M AUD. Think about it for a moment. Or yet another one with a truly massive resource at >2x CNQ's grade and the benefit of a significant tax advantage for 50M AUD. http://www.objectivecapitalconferences.com/ocic/globalR2011/bwesson.php At current prices I don't change horses yet. But should the traders continue to take the stock higher (and they might do that regardless of fundamental considerations as long as the omniscient lines in the chart tell them), that might change.