Showing posts from January, 2018

ML Gold following the Garibaldi model, but without the egregious market cap

I was tied up with a financing and not on top of the news, so I missed it last week when ML Gold (TSXV:MGL) announced that drilling at its Stars Property in central BC intersected 311 metres with visible chalcopyrite mineralization (link).  Thanks to reader DH for bringing this to my attention.

So, once again we have a junior mining company announcing a new discovery prior to releasing assay results.  Garibaldi Resources (TSXV:GGI) demonstrated last year how to send your share price skyrocketing this way without any assay results.  In my opinion, GGI over promised and under delivered, although the best example of failing to live up to the hype was New Nadina (TSXV:NNA).  That stock crashed in spectacular fashion at the beginning of 2018.  Somewhere out there is some poor sucker who paid $4.50 for NNA shares, which are now trading at $0.41.  Ouch!

While there are similarities between MLG and GGI, a big difference is that MLG is trading at a market cap of $19M while I was criticizing GG…

Crypto crash

For some morbid reason, it gives me pleasure to see Bitcoin and other cryptocurrencies crashing.  Maybe it is because there is way too much talk about cryptos now or maybe I'm jealous of all those Bitcoin millionaires buying Lambos.  For their sake, I hope some of the fortunate ones did cash in and buy real assets because cryptos appear to be crashing...and I don't think we've seen capitulation yet when things will really crash.

Cryptocurrencies have not had a good year so far and the sell off has now accelerated due to rumors that China and South Korea may implement regulations that could go as far as banning trading in cryptos.

Below is the one month chart for Bitcoin.  Yep, that is almost a 50% drop in a month.  That is what happens when there is no real underlying value and price is set simply by supply and demand.  Bitcoin increased roughly 1500% in 2017 and it will be interesting to see how it fares in 2018.

Casey Report to blame for Aurania surge

Further to yesterday's post, which speculated that James Dines caused the sudden surge in the price of Aurania Resources' shares (TSXV:ARU), it turns out that it was the Casey Report.  Author E.B. Tucker raised the "buy-up-to-price" for ARU to $15.  WTF E.B.?!?!  Why would you tell your followers to buy up to that ridiculous level?  Unless you think there is imminent news about a major discovery, why not recommend accumulation of stock at current prices and then to buy on dips?  You even state in your article that ARU shares are tightly held, with insiders controlling 70% of the stock. That does not seem like a good way to make your subscribers money.

In an interesting twist, Aurania issued a news release on Friday afternoon commenting on the increased market activity and linking it to the Casey Report article.  The "company is not aware of undisclosed material information" news releases are useless.  It is a breath of fresh air to see a company actually co…

New year, same stupid investor behavior (Aurania Resources)

Happy New Year to all!  May 2018 bring us mining investors the joy that marijuana and cryptocurrency investors saw in 2017.  Despite no exposure to those sectors, I had a very good year in 2017 and will remember it fondly.

2018 is off to a good start for metal prices and mining stocks, thanks in large part to US dollar weakness.  I think this is going to be a good year, but then I usually start the year off with such wishful thinking.  We are getting into the latter part of this economic cycle, so the time is right for materials stocks to finally do well.  My favorite metals for this year are zinc and silver, but I also like copper.

Reflecting on my strengths and weaknesses, I often let fundamentals and my cynicism get in the way of making profits.  I didn't jump on the cobalt or lithium band wagon because I didn't understand those sectors/metals well enough, even though I could tell they were hot.  Duh, you don't need to understand the sectors when anything associated wit…