A
"junior resource" refers to a person or thing that is considered to be at a lower or less experienced level within a particular field or industry. It can refer to a young or inexperienced employee or a less significant source of information or support.
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But seriously, these Portfolio returns serve up the same question I've asked before: Is it even possible to invest in
junior resource stocks in any kind of successful analytic fashion?
This once again illustrates just how high / numerous the hurdles are for investors looking for long term success
in junior resource stocks.
Putting this money to work might well generate fresh excitement amongst
junior resource investors, but I struggle to understand the need for these funds.
On a regular / bad day, I'd probably assign a zero value to prospective resources — which turns out to be true far too often, especially
with junior resource stocks.
After watching
several junior resource stocks in his portfolio crash, he's ready to switch to a mostly indexed portfolio of ETFs.
But it's not as simple as that... Focusing on a P / E ratio's a rather pointless (& misleading) exercise when it comes to
junior resource companies.
I guess I'm prejudiced — hard enough to extract capital from regular co's / management, but it really doesn't even feature in the mindset
of junior resource stock management (or even shareholders!)
OK, right, that's probably the best you can bloody well hope for with
most junior resource stocks..!
[Albeit one comprised of a spectacular near - 30 % gain
from junior resource stock shorts... mostly offset by losses from virtually all of the non-resource shorts].
You should be able to confirm / calculate the value of intangibles from other sources — like reserve reports, industry comps, superior / sustainable earnings etc. — if you can't, it's usually best to ignore these «assets «(try tell this to your
average junior resource company investor, sigh...).
[Nothing's more dangerous than a promoter who believes his own shtick — as so
many junior resource investors discover, to their cost].
(TSX.V TSN) is a Canadian based
junior resource mining company currently in pre-production at two Mexican gold, silver, and base metal mining projects and is advancing both towards commercial production...
She wasn't just bothered about the loss — she was also angry that the advisor had purchased the stock in the first place, since she wasn't interested in speculating
on junior resource companies.
Is a Vancouver
based junior resource company with projects in North and South America, focusing on the development of our Copper and Lithium Frequency about 3 posts per month.
But even the muppets have now lost faith here, and Teeling's dropping hints of a new story (or two) to come, a
classic junior resource strategy: There's only so long you can beat a dead project, but management would never dream of folding up tents & calling it a day (like normal businessmen), so a brand new story (& placing) is the inevitable solution.
For his portfolio, he's intrigued by the Couch Potato concept but he's still hanging on to a collection of mutual funds and
Canadian junior resource stocks in hopes they will recover from steep losses.
Rajeev commented, «Lomiko's technology division separates it from
comparable junior resource companies focused on graphite and gives the company a competitive advantage due to the near - term cash flow potential of some of these investments.»
So with this new cash, no debt over-hang, some Oil - India assistance, and a little luck & momentum, I don't believe management are doomed to keep failing (as they do in most
junior resource co's).
But hey, what do I know — the most likely course of action will probably be the good
old junior resource stock standby: Management will bury their heads in the (mineral) sand, wait for the share price to totally collapse, and then they'll finally launch a massively dilutive placing...
with leverage) & suddenly it's worth $ 2 the next morning, despite
what junior resource stock promoters would have investors believe!
Plus we also see Fastnet's participating interest's now down to 9.375 % — of course, this is another form of
dilution junior resource investors suffer constantly.
I really don't get the
whole junior resource stock obsession, don't these losers know in just about every instance lottery tickets & scratch cards would be safer & cheaper..?!
All this goes to prove pretty much everything I say
about junior resource stocks: Buy»em when you haven't a clue, or buy»em after some in - depth analysis, they're always going to be just a blind - luck crap - shoot regardless... I'd prefer not to be proving that with my own money though... ouch; --LRB-
It's rare to
see junior resource stock management voluntarily sell a project — I suspect the real objective here is a JV, or some other type of farm - out, to raise cash and / or fund the proposed mine.
It's all an unpleasant reminder that even reserve -
rich junior resource stocks can spiral ever lower if they're cash - strapped... It also highlights how sullen & uncommunicative management can become with investors when things start going wrong.
Positive cash flow is also tempting, but: i) I don't mean positive operating cash flow, I mean positive free cash flow — this may seem extreme, but in most instances I think it's prudent to treat all exploration spending as basically worthless,'til its value is actually confirmed (if ever) via a proving up of reserves / resources, or an actual sale, ii) how often do you come
across junior resource stocks with positive free cash flow anyway?!
And you'll never see a long -
term junior resource stock index either — I mean, what broker wants to show you what that looks like?!
But so bloody what... every
single junior resource company can boast the same, yet how many ever discover a commercial resource, let alone ever successfully develop it, let alone ever deliver an ultimate profit to the average shareholder (who's inevitably been diluted into oblivion at that point)?!
Oversight of an internship fellow: Interviewed and selected a candidate from the Northeastern Co-op Program for a winter internship, trained more junior resources
In fact, I tot up a (3.3) % loss
from junior resource stocks in aggregate, so that's most of the shortfall right there.
Phrases with «junior resource»