Gold Mining

I mentioned this stock before: http://www.guinnessexploration.com/

Finally they received some assay results from their summer drilling program. Any investors here recommend a site for feedback on what the assay results mean? Thanks in advance...

 

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I would think that if you enter your email on that page you will receive a partial or full prospectus which will have the information. :thumb:

 

So how do results correlate with the stock price?

 

While I understand that a discovery of a high output mining site will raise the stock prices significantly, I defer from these investments. I have seen many of these come and go and even invested in oil drilling, etc. However, over the last 40+years I have never been quite lucky enough to pick the right mine, well, whatever. It seems that operating costs usually eat up whatever profits there are, leaving little for dividends.

Good luck to you on it.

gary

 

Assay results are the same regardless of industry. You are usually hard put unless you are in the industry to catch when to invest in a "minor". The smart money usually knows long before you. All mineral exploration investing is really the wild west. I would not suggest putting any money in that game unless you are one of those who do know someone in the industry. If you want to invest in a mining company, invest in a major.

 

Agreed. I am hoping to get out when I can without losing my shirt on this one.

 

No doubt they will engage in another advertising/direct mail campaign for new investors based on their interpretation of the findings. I agree with medoraman, but since you are in and want out, watch for a peak based on this news. It won't last long, probably just to their next required SEC report.
Jim

 

Thanks for the advice. The shorters always seem to take over when there is no news and it is going to be a long winter in the Yukon, where all the drilling was done. Probably no more drilling until next June or July when all that Moose pasture becomes passable to the heavy trucks.

I called up Skymark, an investment company that had done an analysis on Guinness. They said a solar company, PBEC was about to take off. I bought some of that stock and then the Canadian authorities nailed Skymark bigtime, and PBEC tanked. I'm going back to hard assets.

 

My guess is that you will never get out without losing your shirt. The stock is down in the best year for gold in decades.

 

It rallied when Canadian authorities gave them the drilling permits. Then it drifted downward. Some good results came out today, they have yet to get the important results. Do all gold mining stocks go up if the results are favorable?

 

NO need to go back to hard assets, just do not be "sucker money". Invest in firms you believe will be long term values, watch stocks for a while and try to buy on lows. Stay away from any stock anyone recommends to you. There is probably better money to be earned on the companies taking the ore out of the ground than the metal itself, just don't be played. I would recommend a couple to you, but I just told you to not listen to anyone. Seriously, if you think commodities will be higher priced long term, look at good, listed firms who either dig the commodities up, process them, or transport them. Its not a great time now since many I own have gone up lately, but long term these will be sound picks. If you also think the US dollar will go down, invest in companies who are headquartered in countries who derive most of their income from natural resources, as their currency will go up.

I found it weird that in the Yukon they would wait for winter. I own, (shares), in a company with a diamond mine up that way and they actually wait for summer, since they can only work when ice has frozen the ground.

 

OK. Guinness was waiting all spring for conditions to improve so their heavy equiptment could get to work. They were way late on their predicted time. Maybe they can move forward again once they get positive results. But their budget seems stretched at this time since they are yet to realize any profit.

 

The principle investors in companies like that make their money from selling the millions of shares they bought as less than a cent or so, buying selling amounts at almost any profit, issuing more and more, until the company go broke, then they just start over with a new name and jingle. Gold, gems, oil, desert real estate development, etc. IMO

 

desertgem has summarized the deal perfectly.

 

Gold, gems, oil=snake oil would be my guess!

 

http://www.coastalpacificminingcorp.com/

This mining stock has been on a roll. Any investors at Coin Talk in this one?

 

I only invest in the majors. Like I said before, any minor company is too easily manipulated and people with inside information are in a much better position than others to react to news. Please be very wary of any penny stocks and remember this. Most penny stocks are basically akin to buying a Powerball ticket, except lower odds.

The majors have been doing well. If you really wish to buy mining companies look at Rio Tinto, Barrick, Freeport Rand, Goldcorp, Newmont, etc. You have a much higher level of confidence in them and they are not easily manipulated.

 

I agree with you. However if you look at this company's graph in the last week you've got to be impressed. From a few pennies to over 80c in a few days with over 90 million shares traded today. Probably a pump and dump.

I spoke with a coin dealer at a recent show, a retired engineer, who beats the odds at the casino poker tables. Kind of impressive.

 

Look at the financials. The company is insolvent. Where do you find this stuff?

 

Are you referring to the 20f? I would say the "insolvency" is simply due to a classification of asset versus expense. I have seen many startups like this Cloud.

Point is still well taken that this is speculative. Owle, you should read some financial instrument history and gaming and look how "boxing" and other sucker inviting strategies work. "Pump and dumps" are the simplist form of this game and the most illegal, there are many other games played with these stocks that are legal but will still take sucker money.