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April 13, 2007
About miners and jockeys, Fri., Apr. 13, 2007, 2:02 PM
Do you recall, Week #12 (2007-03-24) in Review (FINAL)?
After the close on Friday, the one-year saga of US Gold (UXG) came to an end with the acquisition of three junior prospectors being formally acquired. Now that the regulators have been satisfied, I would think that the company now wants to announce the results of its extensive exploration activities in Nevada since December.Now that the company can begin to promote itself again, I expect the share price to move back into the US$5 to $6 range. How quickly and how far north the stock price goes will, of course, depend on drill results and geological evaluations. As a pure minerals prospecting spec, I believe UXG is the best one on the board. That’s because I bet the jockey.
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It has been quite a ride. UXG has moved from US$4.13 on the AMEX on 3/23 to today’s mid-day price of $6.55. That’s a gain of +58.6 pct over the past three weeks. And, since I recommended it in a list of 20 PM stocks on Jan-12 at $4.52, UXG is up +44.9 pct.
Whenever I am out meeting new people, they ask the same questions, “Why do your readers read your blog? What do you write about?”
I always respond, “I write about everything financial. They seem to like it.”
Do you really think I can answer, “I show readers how to make gains like +58.6 pct in three weeks”?
Week after week, month after month, and now year after year, I surprise myself that I have so many winners. Less surprising is that readers like to comment on those such as Richmont (RIC), which the reader “onlineaces” thanked me this morning for. Yes, RIC is up from $2.33 to $3.19 in three months since I gave you 20 gold and silver stock considerations on Jan-12. That’s a gain of +36.9 pct.
What went missing was “onlineaces” pointing out that two of those twenty are down: Alamos Gold -19.0 pct and Guyana Gold -20.5 pct. I know those jockeys too.
Still, the whole list is up +18.5 pct versus the large cap (Barrick, Newmont and Goldcorp +3.2 pct on average), which was a point I was trying to make before the event.

The Gold price has done pretty much what I was expecting today – up +$6.90 on the spot market – and that’s because I also know the jockey.
Well, I actually don’t know the guy personally, but I hear he enjoys throwing money from helicopters. And you know he'd never throw Gold. Doesn't that tell you something?
Posted by Posted by Bill Cara on April 13, 2007 02:00:55 PM | Category: Gold
Discourse
I'll second that, Telestar3d.
Before happening upon Bill's site 8 months or so ago (while looking up SNDK on seekingalpha), I didn't know a single thing about the opportunities that lay in this sector, or now that I think about it, trading in general. Thanks Bill, and every other contributor to this site. You guys (and gals) are awesome.
Posted by: Eric
at
April 13, 2007 3:06 PM [link]
I also must express my gratitude as i've enjoyed the KRY/UXG ride. However my ride has been tempered by AGI. Dug through some research, problem seems to be higher costs (significantly higher than feasibility study). Little discussion in latest annual report about further increases in reserves or exploration activity which might give valuation a pop.
So what to do? hold on? double down? Seems like there may be better opportunities elsewhere... Or is this one of those 'let share price languish before heavy buying ensues' situations?
Any feedback would be greatly appreciated.
And Kaimu, thanks for CNU, also doing very well. Can't remember if I came across CMM.V here also, but it's been on a tear today as well.
Happy trading.
Posted by: proudPapa
at
April 13, 2007 3:51 PM [link]
Alamos Gold (AGI.TO) and Guyana Goldfields (GUY) have been hammered down. With Alamos, I understand that the Funds were unhappy with the total oz of production so far. At least that's what a mining analyst told me recently.
I know the jockeys of both companies (John McCluskey for AGI.TO and Patrick Sheridan Jr for GUY) and will follow up in a couple days, and do a write-up for the blog.
Posted by: Bill Cara
at
April 13, 2007 4:05 PM [link]
Hey Y'all,
I just met a girl for drinks that I'd graduated high school with and I am tellin' ya, it's better than even that we stay together. Were both early 40s both never married no kinds, and she's GREAT looking. OK fellas, I know what you're thinking...She's Nuts!. Well, we'll see.
Unloaded the KRY I bought yesterday ont the drop At the open better tha I could'ave yesterday, then then re-bought, and sold again into the totally irrational yet beautiful run up to 441. I held too long, but so'd most everyone else. Selling opptys are so short!
Bill, get your golf game ready, I'm coming to Bermuda!
Chris Hunter
Posted by: shark_attack
at
April 13, 2007 6:51 PM [link]
Whoa.. shark attack.
What about just getting reacquainted?
Let's not make the same mistakes.. we might have made before.
None of my business, of course, but that's no reason for me not to pile on... not on this site!
Why not let her in on who Chris is?
She might prefer him to a shark attack.
Also, Bill ain't going to Bermuda.
Not a bad place for a honeymoon, however.
Posted by: Rigdon
at
April 13, 2007 7:30 PM [link]
Having read for a while prior to deciding to post here, I've grown as fond of the banter almost as much as I enjoy absorbing the vast knowledge of Mr. Cara. A lot of excellent advice is posted and I thank you all for being so kind in offering the help for us novices.
My Brother took note of this site first so he gets credit for the discovery, lol. We both love the little miners and seek them out for trading here in the US, but realize that we are missing out by not trading in the Canadian Exchanges, something we soon intend to correct.
I will re-acquire UXG as I put it on my Friday dump list (oh the pain!) of spec stocks. But, the proceeds did go towards my buy list pile of powder and AU was purchased with it, which delivered a sweet enough 85 cents profit/share (with grease) for the day. Guess you get lucky every now and again.
One micro that we are very fond of is SDRG. Along with AUY, they've been in our portfolio since we got into the game and we believe that the future is very bright, particularly the last two quarters of '07.
Cheers all, hopefully y'all won't have to deal with the Spring weather as we will this weekend.
Posted by: redclaydawg
at
April 13, 2007 10:26 PM [link]
Kinross CEO interview
Posted by: Telestar3d
at
April 13, 2007 10:57 PM [link]
Sorry T3d, it didn't work for me. I sub to The Street, so I can access all of their content, but that one escapes me right now.
Kinross via Bill's council is safe enough for moi.
Posted by: redclaydawg
at
April 13, 2007 11:27 PM [link]
redclaydawg & others:
Try this link: http://videoplayer.thestreet.com/?cl...=1176485581031&bt=NS&bp=WIN&bst=FF&biec=false&format=flash&bitrate=300
If that doesn't work, simply do a search for "Kinross" and you'll find the April 12 interview.
Bill, your call on UXG was definitely on the money. I found myself waiting for the 4.25 (USD) price target when they were hovering at 4.32(ish) not too long ago... I wanted to double down... then one day I got to the computer to find UXG up 30%, I figured it was too hot to touch... little did I know there was another 20% climb coming shortly after! I've yet to learn how to deal with a one-day giant leap in price when I want to buy-in...
Posted by: Fazeli
at
April 14, 2007 1:03 AM [link]
Bill and others, thanks for the review and comments. I am just wondering if any one here has idea why HBM.to underperformed while the entire sector was so strong recently?
Thank you in advance.
Posted by: SmallCapFan
at
April 14, 2007 3:18 AM [link]
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What really turned me around about junior gold stocks was a presentation by Robert McEwen’s and why he preferred this space. While the concept appealed to me I had no knowledge about this space. Thanks to Bill Cara for sharing his knowledge and opining on various companies I was able to navigate this area with great success.
I can state flat out that without Bill’s sharing I would have never been involved with either KRY or UXG two of my best performers.
Thank you Bill!
Posted by: Telestar3d
at
April 13, 2007 2:40 PM [link]