What’s Lundin’s February “Gold Investor” Stock?
by Travis Johnson, Stock Gumshoe | February 6, 2014 1:25 pm
Bonus Irregulars Note on a teensy weensy miner
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I am interested.
I think maybe better investment, one pull on $5 slot machine.
Thanks Gummy for this intriguing little extra. I’d agree that the results are not “remarkably high” but they do look pretty darn good. The stickler is, of course, economic. What will it cost to bring this stuff out, and is that 12 million going to be enough to support successful production? I’d love to hear Myron’s take on this one.
Are any of the regular Irregulars going to the Vancouver thingus Jan 28-29?
OOps!
I thimk it is safe to ignore this question. My apologies for hitting wrong button
Your wish is my command Barb. I have read a lot of Lundin’s information over the years and have found him to be very much in sync with my own thinking. His stock picks are as good as just about anyone in the business and his reputation among some of the best in the business of commodity investing that includes millionaires and billionaires that regularly speak at his New Orleans Investment conference praise him highly, in fact the Lundin family are a legend in the whole commodity business.
As to specifics, I do own the stock from years ago, and based on the latest drill results will hang on to my remaining free trading shares, and you are right, 5.6 g/t looks pretty darn good. Stock price had gone as low as .02 and I seriously considered adding to my small stake, and wish now I had. Risking a few hundred dollars on a stock like this can easily be the simplest way of doubling your money you will ever experience. Would need to do some further investigation before deciding whether this is a good point to buy in for first time investors, but that applies to dozens of low priced stocks. Certainly it is still a long way from a mine development and a PEA would be a first step in making that determination.
Gary is certainly correct that it will cost millions to bring a mine into production which is why most of the money tends to be made early on when discoveries are first made, getting out during the actual mine building phase begins, depending on the amount of money that needs to be raised. I agree with Gary that there are easily a dozen junior miners with better numbers, but if you got in at the right time it may still be a good speculation.
Currently I am trying to stick with stocks that are at a much more developed stage in my own profiles, but once the market stabilizes I will profile earlier stage projects like this when we are back in a strong bull market where low priced stocks tend to double and triple on the slightest good news. For the record, I have made more money buying stocks under a dollar than I have stocks over $5. Kenny Rogers has the answer, “know when to hold em, know when to fold them.”
‘Lundin’ was what caught my attention. From what you say he is related to the Lundin Oil family?
I’m pretty sure Brien Lundin is unrelated to the Adolf Lundin family — if he is, it’s presumably not a close relation. The Lundins are Scandinavian, Adolf’s sons in the business are Ian and Lukas, and everything they touch seems to turn to gold or oil.
Brien Lundin is a Louisiana guy, went to LSU and works at (or runs) Jefferson Financial and the New Orleans Gold Conference. He also is a co-founder and board member at Natcore, an oft-teased (a few years ago, at least) solar/coatings stock.
Thanks Travis.
I spent some time on Google and couldn’t see a link between the families.
Have owned PEM for quite some time and considered buying more for several months as the share price was at its lows, but it has steadily moved up, so maybe Brian Lundin knows something I am unaware of in respect to March 21st. There is only so much time available to research stocks in depth and only so much money available to buy stocks, so since I already own a position will just wait to see what develops. No doubt in the months ahead I may miss out on some great plays simply because i don’t have enough money or time to catch them all. As those paying attention already know, Travis and I have very different investing styles, I don,t consider a $12M dollar company as “teensy weensy” it is where i make most of my profits, stocks under .50 that have the potential to double or triple in weeks or months.
This type of stock usually gets run up on the promotion then drops back to the original price. It takes millions of dollars to bring a gold mine into production, very few of them make it. It is difficult to get stock without paying a substantial premium and then even harder to get out unless you are willing to accept 20% below the last. It has already more than doubled so the play here is to short the stock which I would do in a heartbeat but shorting OTC stocks is not allowed.
Right now the spread between the bid and asked is 23%–try getting out of a stock like then when it starts to drop and it will as the volatility is extremely high and the number of shares traded is 6,000.
I can name 20 penny gold stocks with better numbers.
Haven’t checked shorting the stock, but here again buying on the home market in this case TSX-V is a better bet than over the counter. Junior miners require a whole different mindset than the traditional market. Yes 6000 is not a lot of shares traded in a day, but with juniors having been “out of favour” for 2 years you position yourself for a turnaround with small stakes while stocks are available at a bargain price.
You are quite correct that many juniors never develop a sufficiently large and/or economical resource to ever become a mine, but they can still make you a lot of money in the speculation stage if you know, “when to hold em and when to fold em” as per Kenny Rogers song. Given the thousands of juniors out there I would not argue against your premise of there being 20 out there with better numbers, you could certainly be proven right, so what are some of your favourites, or do you not invest in juniors?
What does that mean, that the stock is going “on the sale rack”? Appreciate an explanation.
Yeah, I want to second Clair’s question. What’s this business about it going on sale March 21?
March 21 sale anyone? I reviewed their info on the private placement offering and recent repricing but still don’t get the March 21 date, except that the stock keeps rolling back down toward single digits.
does any of my fellow irregulars have some thoughts on emxx. THANKS GUYS
I expect to lose part or all of it, but I decided to purchase 2000 shares just in case (good bid/ask spread at Fidelity: 0.237-0.245). Shares have been in a range between 10-30c in the last month. Won’t make me rich, but might someday become a source of funds.
There’s just a (small) chance it could do something big. I agree with aunt_barb that “results are not ‘remarkably high’ but they do look pretty darn good” (5.62 g/t gold).
See: http://goldrushresources.ca/2013/01/what-constitutes-a-good-grade-of-gold-in-gt-measurements-or-estimates/
That concentration seems to have gradually trended higher over the past few years in these reports — but this was a cursory examination on my part.
For a 2010 review of the company’s efforts, see: http://www.youtube.com/watch?v=gD_sskqj7Bg
Correction, bid ask spread is wide even on fidelity: Bid 0.229, Ask $0.263
This is where stink bids come in, if you put in a stink bid at say .235 you move to the top of the line for getting filled intraday by someone putting in a market order which I never do whether buying or selling. Example: in March 09 I bought Rare Element Resources @ .55 on a stink bid, took profits of a double on the way up TWICE at progressively higher prices and finally on a intraday stink bid offering of $14.55 that got picked off and never ever closed at that price as it sold down to under $3.00 this past week, in fact I am thinking of picking up some undervalued shares again. Problem is there are literally dozens like it and as they say, you can’t kiss all the girls.
If you are after a real gold story, check out ABU.AX in Australia. Growing high grade (15g/t gold) resource from surface, trail mining compete, waiting on final approval of Mining Licence…. look into it, this one is GOLD.