Companies like this are win or lose it all speckies. You buy knowing the company is going to bleed cash over a far longer period than you initially hoped for looking to strike it lucky. You also buy backing the management.
About eighteen months ago I overhauled my portfolio and scaled back on nickel explorers. I was holding GAL who up until that stage had no luck with the drill bit. I sold it and a few others because I wanted to allocate more of my portfolio away from speculation and into cash. What do you think happened next? They hit something the market liked and six bagged almost overnight. I would have been better off holding onto all my nickel speckies and selling GAL on the news.
speckie money pits such as gold explorers and biotechs are in the toilet in the current market environment with short term interest rates giving positive real returns.
MKG Price at posting:
1.4¢ Sentiment: None Disclosure: Held
