sbm, page-7

hi jocam,

Im a firm believer in that you need a firm timeframe and a set strategy to win with mining stocks. someone looking for a two month trade will have a very different approach than a 12 month or two year holder. alternatively a lot of people get suckered into buying for exploration programs dont realise the high risk nature of it, lose their dough over the long term though they get some fun out of short term wins.

my own strategy is to look for lower risk plays where a reserve is defined, finance is in place and start of construction is happening. i.e. an increase in earnings is a dead cert, its just a matter of timing. there are not too many mines that fail on start-up. there is better leverage in companies with no current production. I hold until gold production is a happening thing then look for the next stock. I have learnt over the years that I personally cannot make consistent profits from a highly speculative short term approach to mining stocks. Its a find your niche thing I guess.

I am in the gold industry and know some companies more than others. I take a sizeable bet on astock I am happy with rather than hold a basket of different stocks. Probably wrong approach with lack of diversification. Will work on that later. I hold OXR only at the moment, will do so until early next year. A little disappointed it hasnt kicked on more, but believe that the best gains will happen as first gold bars are poured and production costs are reported.

DRA also fits the profile I look for with new mine in Sweden bound to get its share price humming over next 12 months.

KZL also a excellent play. Not gold but fits my profile with first mine in construction. Seems to keep finding better ore and will surely rise as cash flow gets closer. Is also exposed to the economic cycle as zinc prices eventally will rise when is strong evidence of world growth picking up.

I think EQI is a bit of a sleeper and doesnt get much of attention. Has some growth with Kirkalocka coming on and I believe an expansion of Rawdon is going to happen. Pays dividends too. A takeover target one day for sure.

cheers
acturtle