Pay day , feel good, right?
I bought back GDX two days ago, that was really lucky. Had to chase GXDJ.
Eric O's Favorite Gold Miners
January 26, 2012 - 12:59pm
#1422
congratulations, Eric!
January 26, 2012 - 2:49pm
#1424
I was a buyer of Aurcana AUN
I was a buyer of Aurcana AUN today, talk about a silver growth story. I did most of my buying a few weeks ago, so it's just sit back and watch time, and I like what I am seeing.
Where did all those miner shares bears go? I thought this site was full of them, bears turn bulls maybe.
January 26, 2012 - 3:05pm
#1425
Claude
What's up with Claude? In a field of green from sea to sea he's the only guy that's still red. Do we still believe or should we cut this guy loose for a while?
January 26, 2012 - 3:42pm
#1426
Yes, Claude has got me a
Yes, Claude has got me a little P.O'd right now. So does Primero. So does Golden Band.
When the whole sector takes off like this, I expect all my ponies to GO! Watching and waiting on these three for now...
January 27, 2012 - 3:33am
#1427
CGR & WDO
CGR, is a problem child,
I wonder why the market is reacting so negative to this stock.
WDO having similar production size, potential growth and much less shares outstanding, could turn out to be a better choice..
Why did AUQ drop slightly yesterday?
In my profession, people are held accountable for what they do and say, it's recorded and kept for many years.
Would like to see a similar control on the "expert" analyst and the media. The amount of hot air they can release!
I amazed that they don't feel the slightest embarrassed, looking at their predictions and statements from hour to hour.
On that note, not being an expert, reading all the concerns and explanations to the decrease of long term contracts and lack of physical buying, even from our own Turd. Isn't just a matter of the Chinese absence this week?
January 27, 2012 - 3:34am
#1428
CGR & WDO
Sorry, double entry.
January 27, 2012 - 9:10am
#1429
WDO
Hello Eric,
Seen this little article on Wesdome with some nice miners analysis.
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=30567006&l=0&r=0&s=WDO&t=LIST
Hope it will help to bank some coin
January 27, 2012 - 9:28am
#1430
More about drill holes
Grams times meters, over 100, is an interesting hole. If you can string together a lot of those, you can make an open pit deposit. Long intercepts over a gram or two is better than narrow intercepts with big grams, because they tend to be more repeatable and dependable. Depth matters too. If you are shooting for an open pit deposit, you'd like to keep it shallower than 200-300 meters or so, if you can.
Deeper and narrower, and you are talking an underground deposit. That's second semester stuff.
So anyway, a "100" hole gets my attention. But at 100 you need a lot of them. If you can get some 200's or 300's in there, all the better. Hit an 800 or a 1000 in there, and you are golden. Convert the silver to gold, for gold equivalents.
So, let's look at these Almaden holes:
TU-11-78: 72.91 meters at 1.2 gram AuEq is an "87" hole. Not bad, but there's more in the same hole. Further down it has another 19.6 m at 1.2g (24) and 23 m at 1.6 g (37). That totals to a "147" hole, down to 173 meters depth from surface, but there's more yet. There's another 41.3 m at 1.5 g (62) just below that. Very nice.
TU-11-82: 241.02 m at 1.0 g (241) spanning a depth from 157m to 398 m. Nice.
TU-11-83: 5.35 m at 1.1 g, and 163.45 m at 2.5 g, for a total of "415", from surface down to 283.9 meters depth. Super Nice.
TU-11-85: 244.6 m at 1.1 g is a "269", but it's a little deep, going down to 463 meters.
TU-11-86: 60 m at .5 g plus 107.6 m at .9 g, gives a total of "127" in the first 248.6 meters from surface. Nice.
TU-11-91: 9.95 m at .7 g (7), plus 7.25 m at .6 g (4), plus 13.85 m at 2.9 g (40), plus 117.4 m at 1.3 g (153), for a total of "204" from surface down to 269.6 meters depth. Super Nice.
So, there you have it. Eric O's home made method of judging drill holes. Not taught in any Geology School. Just developed on my own over the years. It works for me.
Now, go forth and multiply.....
I'd like to direct your attention to an interview that Chris Barker is publishing with the guy from Minefinders right now.
http://www.fool.com/investing/general/2012/01/25/fool-exclusive-intervie...
I mentioned up above about how you might have something if you can string together a lot of 100's (g/t times meters), and that 200's or 300's so much the better. It's interesting to note that the "discovery hole" at Minefinders was 100 meters at 2.5 grams. A 250. A single 250 discovery hole led, eventually, to a $1.5B buyout. So there's some context for you. But read the whole article, as they go into all the trials and tribulations it took to get there. It was no slam dunk, it never is. Everything that can go wrong, usually does, somewhere along the line.
If this stuff was easy, everybody would do it.
January 27, 2012 - 10:04am
#1431
Thanks Owl.
Thanks Owl. 
January 27, 2012 - 11:45am
#1432
Eric Original wrote:
Here's
Here's the news. The Saddle property is going into a joint venture with Newmont. Newmont contributes the past producing nearby Rain Mine, along with all the infrastructure and also a milling agreement. This puts together the puzzle pieces for a big project, and could be a fast track to production. Premier is the operator and has 55%. I like it! Stock still halted as I type. They are holding a conference call at 2:00 eastern.
http://finance.yahoo.com/news/Premier-enter-Rain-Saddle-cnw-1273131048.h...
EDIT: Premier opened up 4%.
Premier is getting the rest of the pop today that it should have gotten yesterday. Up another 8% today.
January 27, 2012 - 7:26pm
#1433
Just asking
I find it discouraging waiting for Wesdome, Claude, and especially Golden Band. I have been in Golden Band for 1.5 years. Claude since August, out and back in to it in Oct. I got into Wesdome at the beginning of Dec.
I am finally up on one. Wesdome 10%. I watched Wesdome do a massive drop after the "weaker than anticipated production" from over $3 to $1.70 and jumped in hard.
So here is my question for you, Eric. How do I know when to get out? How do I know when to jump out and then back in? All I know is how to read into quality companies and determine a fair valuation. I consider all 3 of these companies to have the potential to return to their previous share prices of $3, $2.80, and .70. I am with you in believing that Golden Band will at some time have a market cap equal to Wesdome and Claude. But as I am currently down on 2 of 3 it would be nice to jump in and out for a quick little pick up.
I have a day job and am unable to watch the computer. I don't really have great chart skills.
Thanks Eric
January 27, 2012 - 8:11pm
#1434
Truth Be Told
I'm pretty much exactly like you Saskman. Good on the fundamentals, but still trying to develop some of my trading skills. The getting in and out and back in again part is hard for me, and not something I have great confidence in. That's why I seldom give that kind of trading advice on the thread. No confidence in it.
I will say that hanging out on this blog for a year now has made me a better trader than I used to be. Absorbing what I can from folks like BOG, and SSK over at Pailin's corner. I still find myself married to the fundamentals a lot, but also much more willing to sell something that has had a big run than I used to be. No matter how much you love it, if something runs 30 or 40% in a few days or weeks, you have to let it go. Or at least a big chunk of it. Sure, maybe it will run on without you, but in reality they usually don't. And if they do, don't sweat it, there will be another train along shortly.
Since New Years, I have cashed out of all or part of the following, strictly because they gave me YTD gains of somewhere between 20 and 50 %, even though I still love them: Lake Shore, Timmins, Kimber, Minefinders, Goldgroup, Golden Predator, and Moneta.
In only one of those cases was there an official buyout offer (Minefinders), but I've taken the attitude that when the market as a whole offers me an attractive buyout offer, I have to think about taking it.
The "old me" would have taken the position that these are my leaders and I don't want to sell my leaders, but I've learned the hard way that in the miners that just doesn't work. It makes you end up buying or holding all the stuff that is ripe for a fall back. The "old me" would have been really fearful that it would just run away from me and I'd never get a chance to buy it back. The "new me" is willing to accept that risk. It turns out that more often than not, you do get a chance to buy it back. And if you don't, you just have to accept the idea that it's no big deal. Catch the next one.
There's also an element of value in my calculations. If something runs up, then it's not such a great value anymore is it? Maybe it's time to take some cash out and reinvest in the next one that maybe hasn't moved as much yet, as long as you still love the fundamentals. I still demand that they are participating in an overall move in the sector, but I'll do some rotating out of the ones that have moved a lot, and into the ones that haven't moved as much, within reason. Unless the performance is so bad that I think the investment community has either left them for dead, or there's something fundamental going on that maybe I don't know about. Virtually everything I've sold so far this year has either run up a lot (see the list above) or has really disappointed me by not participating at all. Still pretty much holding all the stuff that is "in between".
Sorry to ramble like that, but yeah, I'd love to hear what BOG has to say on the subject......
January 27, 2012 - 11:03pm
#1435
Newstrike Capital
Some news slipped by me today from Newstrike. Drilling news that really didn't excite me. Didn't excite the market much either, apparently, because NES was trading around 2.80 when the news came out, but the stock ended the day unchanged at 2.69.
http://www.newstrikecapital.com/investors/news-releases/index.php?&conte...
I'm giving them some slack though. These holes were drilling around the edges of things, trying to find the limits of the Breccia zone and also testing some new zones. Keep in mind that the Breccia Zone is what Newstrike is all about. Some of the earlier holes in the heart of the Breccia Zone hit numbers like:
3.0 g over 214 meters
1.40 g over 282.5 meters
7.51 g over 230.95 meters
2.51 g over 112.9 meters
And there's more. It's drill holes like these that make me own the stock. I'm not worried about the ones from today.
January 28, 2012 - 1:32am
#1436
major miner action
this wEEk EO. gOOd on you bro. glad to sEE you taking some profits here, blOOd sweat and tears im sure....always read your thoughts and aCCounts of the action...thanks again for puTTing this info out there...love the knowledge.
January 28, 2012 - 10:02am
#1437
Saskman, I think trying to
Saskman, I think trying to trade in and out of these stocks is a big waste of time. I take a position and hold it for the most part, if I get a big return, I sell some and put it somewhere else.
No one is smart enough to know where these smaller names will trade, just look at the charts, the big moves always happen in a short period of time, and they go higher than most think, same with the downside.
Even watching them day to day is hard, just because XYZ does not move higher on a day where everything else in the sector goes higher does not mean XYZ is a loser, XYZ may move higher 5 days later for some other reason.
Sometimes there are true losers out there, and we must cut them out, but again sometimes as soon as I sell them, they become winners, that is why I hold for the most part.
January 28, 2012 - 12:15pm
#1438
Gold Canyon Resources
Stellar drilling from Gold Canyon this week. 127.5 meters at 3.51 grams. I don't really follow GCU though, because I can't figure how they are going to do an open pit deposit underneath a lake. I've seen perfectly good underground mines underneath lakes, but open pit? How do you do that? Divert the river? How do you get a permit for something like that? I don't worry my little head about it. I just move on.
http://finance.yahoo.com/news/Gold-Canyon-Intersects-127-5-iw-77460680.h...
January 28, 2012 - 6:07pm
#1439
How to trade the miners...
Everyone must find their own system...as everyone has different amounts of money/time frames...& must determine what is most practical!...However...we will all agree...at some point you MUST take profits...or risk losing it all...as profits may go up in smoke...on a news release...or black swan event!...First question should be...how much am I willing to lose?...If you can lower the risk...then there is much more to gain!...So how do I lower the risk?...First...everyone needs to determine the total amount of money to allocate to a portfolio of miners...Example...$50,000 will be allocated to the total miner portfolio...decide how much money & shares are to be utilized for each of these miners!...If you want to buy $10,000 worth of shares for a miner...Take $2500...& this will be the "trading" shares...& the other $7500 allocated into 3 tranches of $2500 buying the dips...to initiate your "core" shares!...The lower the share price...the bigger the winner!...However...this ideal situation does not present it too often!...The biggest dips for most of the miners...have passed us by already...but it's still not too late to get on the train...as there is huge...huge...upside ahead!...When you see the price go down 10%+...from previous days close...buy a tranche...if you see it go down some more (10%+...may be wishful thinking)...buy another tranch 5%+ lower...until all four tranches have been bought!...Take the tranche of shares bought at the lowest price dip...& this will be the "trading" shares...& the other 3 tranches will be the "core" shares!...When the "trading" shares go up 15%+...sell them...wait for a dip...or if you are impatient...& see another opportunity to buy another miner...recycle these profits into initiating a new position on another miner...& then come back & revist this position when you see a bargain!...Rinse & repeat...rinse & repeat...always buy low...& sell high in tranches...as it is very difficult to determine tops & bottoms!...When your "core" position doubles...take 1/2 the shares off the table...when the price goes up another 25% or more...sell another tranch...or just leave them...& them grow!...Whenever you take profits...you are eliminating risk!...There are some miners which I have initiated positions with $50,000!...If you are putting this kind of money to work on a miner...then you may have 2 sells & 2 buys on the go at the same time for each miner!...I call this "bipolar" or "catch 22" trading...so damned if the price goes up...or damned if the price goes down...further...each of these orders will get hit...& I will win on both sides of the trade!...
Folks...I do hope this helps!!!...
Bag Of Gold
January 28, 2012 - 6:27pm
#1440
@Saskman Trailing stops
Trailing stops are one way to set up sell positions. You set a trailing stop (either absolute $ or a %) below market. The stop moves up as the price advances. If the price falls enough to trigger the stop it is sold. That way you ride gains but sell on dips.
January 28, 2012 - 6:34pm
#1441
BoG ~~
thanks for that...i remember reading that back when i got into peNNies after reading though your treasure of a thread the first time...i stiLL have 10 of them peNNy friends...only bEEn able to seLL 2 of some of them for profits...and went in on dips 2 times and aDDed...now we are lOOking to take some profits on 4-5 of the others...thanks again for breaking down how you play the game....love it!
here is a shot on me..and EO get in there tOO. thank you
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Pay day , feel good, right?
I bought back GDX two days ago, that was really lucky. Had to chase GXDJ.
Feels awesome, padme! Giddy Up!
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