Hi nofillerI'm not sure re your experience with small...

Hi nofiller

I'm not sure re your experience with small exploration stocks but IMO looking at charts for these small exploration co's is of very limited benefit. The reason for this is that many of these stocks are very illiquid and are almost solely driven by exploration results - strong exploration results, price goes up, poor exploration results price drifts down. Investors can spend many hours analyzing charts but it's all absolutely meaningless when the co has a great drill hit and the price doubles in 1 hour.

IMO a much better use of one's time with these small explorers is to analyzing each co in depth - management, assets held (tenements), market cap and enterprise value, current exploration program and when drill results are expected etc. Look for scenarios where the risk versus reward is attractive eg, good management who are real explorers/geologists (not financial engineers/spruikers), low market cap (not overpriced and over-hyped like many co's), good ground (I used to try and pick winners before they hit anything but I now look for stocks that have already had some drilling success and are looking to grow that success/resource), active explorers doing real exploration (not lifestyle co's bringing out quarterlies that fob off the shareholders without actually doing much real exploration besides desktop studies from the office). Also, for me I'm cautious re country risk so favour co's exploring in Australia - I acknowledge that Africa etc hold huge minerals and some co's have done very well eg WAF however I'm always worried that the Projects will be disputed/expropriated by the overseas Govt etc. Also, most small explorers don't really have the resources (cash) to effectively manage/run overseas offices.

If you look carefully you can find some co's with compelling risk versus reward, and these are the ones to invest in. I don't see this as gambling, but rather as probability and mathematics.

GLTA & DYOR