Prospect Generators

by Travis Johnson, Stock Gumshoe | April 24, 2009 1:30 pm

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Source URL: https://www.stockgumshoe.com/2009/04/prospect-generators/


2 responses to “Prospect Generators”

  1. leadgal says:

    Newsletter writers wouldn’t know a real “prospect generator” if it bit them. Here’s a company whose business model is devoted to rapidly developing prospects. Like good traders, they cut losses quickly and focus on the winners. They presently have two projects with known resources in the ground in politically low risk venues (Dominican Republic and Spain). In each project the ore is readily accessible. The Spanish silver resource is HUGE. Favorable news releases on both of these projects have been issued within the last 60 days. The stock has moved up 25% in that time. They have exposure to both gold and silver; and importantly, they are partnered with larger producers. I own this stock and make no comment on where the share price may be going. Do your own due diligence.

    http://www.goldquestcorp.com/s/Home.asp

  2. Carroabsves says:

    re Sprott;
    Not sure if you mentioned this anywhere but Sprott is set up like a hedge fund; the managers take 20% (give or take) of profits over Bond rates. This is a quote from their presentation:
    “Annual performance fee of 20% of
    the difference between the pre-tax
    profits for the year and the average
    month-end NAV multiplied by the
    percentage return of the Canadian
    30-year Generic Bond index”
    Perhaps they are good but the dilution of earnings is 20%.
    Note also the Gold and Silver represent 20% of assets.
    They have recently invested $27 MM in a farm (all-be-it a big farm). I question if their background in mining will be of assistance. Farming has not been a sure way to riches. The main way to farming profit that I know of is selling the land at some point. In this case they do not own the land but are leasing it.
    Diversification is not always a good thing.

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