Suntrader, they say never fall in love with your stocks....and I...

Suntrader, they say never fall in love with your stocks....and I was infatuated for a wee little while, but I always, always keep wondering if I'm wrong. And the more I thought about MTB and the less they seemed to be doing to actually do ANYTHING, the harder it was to avoid taking emotion entirely out of the equation and just quitting the stock.

It was sub-prime and the January crash, really. I was being towelled up all over the place so I sat down and asked myself: which junior mining companies will rebound, and which will die a slow death?

The answer was the ones with;
- high grade deposits
- bulk commodities like iron (and now potash)
- strong management
- clear routes to market with no metallurgical impediments or legal impediments
- financing in the bank to survive 12 to 24 months through the bear market

In the end, MTB and most zinc explorers I must admit, did not fit the bill.

The deposit is low grade
It's in a commodity which is under a lot of pressure
Management pedigree is good, but clearly something is going wrong there.
No clear route to market and eventual cashflow (no PFS, no BFS, nada)
No financing. Raising capital every quarter is basically the most utterly fscking stupid retarded thing to do when you are under pressure from a market crash and a dip in commodity prices. It is destructive, dilutive and risky - eventually StateOne will turn the taps off or ouster the Board and get their friends to repackage it or split it off or sell the projects - probably a good thing this side of 400-1,000 million shares. Till then, the share price gets hit every 3 months from the cap raisings.

So. Its all about the funds and the management to me. But this is my own opinion. As a geo I like the geology, but the rocks don't mine themselves and they don't just give investors money.