signs of strength, page-33

CB25, while I purchase most stocks with the intention of holding for an extended period of time - more than 12 months, I think I also have an ability to assess when a stock has run way, way ahead of itself.

Sometimes perfection is priced into a company and when its announcements fail to live up to that, even if good, as is often the case, the price falls (or a rise after the announcement is quickly terminated by a wave of selling.)

For example, look at all the suffering for most of this year on the CQT thread -- CQT was expected to hit $2.00 here early this year - it didn't reach a dollar and now for many months good news has been sold into.

Not particularly pleasant when so many stocks are performing brilliantly.

Look at what has happened to MPO. The company is far better placed than when it was $1.70 (I have adjusted the price for the consolidation) yet look what has happened for months with good news and the share price.

If you have a look at the Commodities thread (see Forums heading on left) you will see my comments about the market valuation of a significant Canadian tungsten producer. Must say I was quite surprised when I found that out, considering the resources the company has.

Worthwhile also looking at what is happening to the market cap. of VML.

PRE looks great to me. A market cap under $60 million and in the process of proving up what should imo become a very substantial gold resource plus other interesting assets.

At this stage I can't see myself selling under 12 months and am prepared to sit through corrections with most of my holding. But if PRE should run up on rumour and hopes to 30c or so next week I might have to reconsider.

Similarly TTR - with a huge in ground gold, silver, copper, lead and zinc resource worth nearly 2 billion in its main project and more drilling taking place means all things being equal substantial upside, especially with a market cap of just $30 million. As more investors latch on it looks like a bet to nothing.

Cheers,
SP.