iBankCoin
Joined Apr 19, 2009
721 Blog Posts

Rise of the Junior G-Men

Jr Gman
 

______________________________________________

In the later stages of these “C-level” cyclical bull runs (unfurling within a secular bull run), it often starts to get giddy-gigglyfun, especially with the junior miners, who all begin to pop audibly, like champagne corks, as the end of a run draws near.

Who doesn’t like 8, 9, 10, 11 heck, even 12% moves in one day?  Like [[BAA]] today — who’d have thunk it’d raise from the dead after so many weeks of dormancy?  I mean, besides me?

That’s not quite right… I didn’t know it would take off today, only that it would within the confines of this cyclical bull run.  That’s why I own 20k shares of this and have owned other small miners ( Golden Star Resources Ltd. (USA) [[GSS]] come to mind) in the past.   They are, in essence, unexpiring options at these prices.  

Here’s [[BAA]] on the weekly chart, finally getting some air off the broken downtrend line:

As you can see there’s a lot of room to grow there.  

And here’s Exeter Resource Corp. [[XRA]] which recently spun off a $3 stock [[EXGMA]] , which you’d have to add to it’s current $8 stock price (we bot the consolidated company in the low sixes, remember?).  Weekly:

Despite this junior giving birth to another junior, she seems no worse for wear, and in fact, stronger than ever.

   Keep an eye on these names and others from the small cap portolio (Rubicon Minerals Corp. (USA) [[RBY]] , Golden Star Resources Ltd. (USA) [[GSS]] , [[EXK]] ,  etc.)  as I have a strong suspicion they will continue to break out to our unending joy and to our enemies great chagrin, for a good piece going forward.

Stay vigilant,  and watch [[UUP]] for clues to the immediate future.

______________________

If you enjoy the content at iBankCoin, please follow us on Twitter

69 comments

  1. YaBollox

    Is TGB too big for you? I suppose not if RBY works for you. TGB are getting a new gold mine in BC (in final stages of approval), and sold part of it already this evening.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  2. MOOBS

    You rule this shiz! Great calls, great foresight and fortitude. Congrats. You deserve every cent.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  3. chessnwine

    PAAS looks like it could take the trampoline up to $40.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  4. mrsbuttons

    silvercorp missed – jake – are you taking profits

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  5. mrsbuttons

    Silvercorp Metals misses by $0.03 (8.96 +0.43)
    Reports Q1 (Mar) earnings of $0.06 per share, $0.03 worse than the Thomson Reuters dual-analyst est of $0.09; revenues rose 62% year/year to $28.2 mln vs the $31.7 mln consensus. For fiscal year 2011, SVM expects a 13% increase in silver production to 5.3 million ounces with production from the TLP, HPG and LM mines continuing to grow as mine development progresses. The Co’s production plan is to produce ~500,000 tonnes of ore at grades of 360 g/t silver, 8% lead and 1.2% zinc, yielding 5.3 mln ounces of silver, 83.7 mln pounds of lead and 10.3 mln pounds of zinc.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • JakeGint

      I will keep an eye on it, but in these environs a miss will sometimes engender interest from a Big. Earnings are of less importance in these latter stage bulls.

      __

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • chanci

        They missed the analyst’s estimate, but they are up huge from last year at this time, and if I read the report correctly they have negative mining costs. I read it several times to try and get a grasp on the negative mining costs statement.

        I took some profits, but they are my biggest holding and I needed to balance the account a bit.

        Jake, are you familiar with Capital Gold (CGC)? I am hoping for a pull back to get into that one. They are looking pretty good –

        “Capital Gold Corporation is a profitable producing gold mining company. Capital Gold owns and operates the El Chanate open pit gold mine in Sonora, Mexico, which is currently producing at an annualized rate of over 60,000 ounces. The company achieved profitability within six months of operation and is today, one of the lowest cost gold producers. The company is focused on continuing to expand gold production at El Chanate, with the goal of becoming the next mid-tier producer in Latin America.

        BTW, congrats on the BAA call! chanci <<<< non believer. LOL

        • 0
        • 0
        • 0 Deem this to be "Fake News"
        • Jakegint

          BAA still has a ways to go to convince me. That TGB you were talking about looks very good this morning…

          My point about the juniors is that you can buy a handful and add to the ones that start breaking out, instead of accepting the “melange” that is GDXJ and paying 95 bps for it.

          __________

          • 0
          • 0
          • 0 Deem this to be "Fake News"
          • chanci

            “My point about the juniors is that you can buy a handful and add to the ones that start breaking out, instead of accepting the “melange” that is GDXJ and paying 95 bps for it.”

            Got it. I have one that is up close to 100% (small position). I’ve been selling half when profit gets that high and my strategy was to take and add to any laggards (that I hadn’t bailed on, that is). Have trouble taking the profits and then adding to a laggard. Maybe the strategy you have to take and add to any that are breaking out, does make more sense and be easier (mentally) to do.

            • 0
            • 0
            • 0 Deem this to be "Fake News"
  6. Goldfinger

    I am using GDXJ for exposure to the small miners. During the last great bull market in gold, I believe the miners outperformed gold and the small miners outperformed the large ones during the last 1/2 part of the bull move. Some prognosticators believe $1250 is next and a breakout possible from that no.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • chanci

      I have GDXJ, too. It is my “easy” holding. But, as Jake said you get bigger returns with individual miners. It is a daunting task, though, picking which individual miners to hold. And then to have to keep a constant eye on the little devils.

      I don’t have all that much trouble picking the silver, just because there doesn’t seem to be that many good ones, but the gold miners…ugh!

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  7. Purdy

    “Stay vigilant, and watch (UUP: 24.82 0.00%) for clues to the immediate future.”

    Why?? Seems pms no longer give a shit about the $.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Jakegint

      Look at a dollar-gold chart. More often than not, when gold rises with the dollar, it’s anticipating a drop in that currency. Because of the problems in the euro, the dollar looks good on a relative basis, but those problems have also given investors pause with regard to the health of all fiat currencies.

      _________

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • wilmer

        Is it possible that Gold has decoupled from the dollar? It seems that way.

        • 0
        • 0
        • 0 Deem this to be "Fake News"
        • Jakegint

          From time to time it does that… the question you have to ask is whether it’s doing that as a flight to safety right now, or is it doing it because it’s becoming a de facto “shadow reserve?”

          (which is also a flight to safety, I guess)

          ______

          • 0
          • 0
          • 0 Deem this to be "Fake News"
  8. francesco

    I did not understand too the call on the $

    nevertheless … ,
    congrats Jake and foremost many thanks for the call on BAA ; I’m late on this but still seems ready to do a nicey move from here

    I’ll get a 20000 too if not to day the first day I sense there’s lil downside left. that’s really sweet a chart and sureley can run up a bit on gold speculation .. the company seems nicely builiding up too to their pojects ..

    cool from you

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Jakegint

      See my comment to Purdy about watching the dollar… I think it will break here as well, which will add further fuel to the fire.

      BAA has been a laggard recently, so it was your good fortune that you are late… I’ve held it for quite a while now… which is sometimes what you have to do with these things, unfortunately.

      ______

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • jackstrawfromwichita
        jackstrawfromwichita

        This G-Man also bought it a while back…..glad to see it finally get moving. Added a little bit more this morning. (not as much as I’d like to though)

        • 0
        • 0
        • 0 Deem this to be "Fake News"
  9. Rand

    You remember the movie, “Goldfinger”, where bond was playing golf with mr goldfinger, and bond drops a bar of gold on the putting green? He says why dont we play for this?
    I remember missed his putt.
    The market might miss too, without that bar.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  10. Infineon
    • 0
    • 0
    • 0 Deem this to be "Fake News"
  11. Rand

    Mr cheesnwine, where are ya??
    They have not given ya a tab yet son??
    Missed those cpmments of yours.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  12. DMG

    Back up the truck on MON at $55?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  13. susie

    Jake, I’m not sure what to make of ANV today, but I added some.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  14. Yogi & Boo Boo

    OK. I’ll try again with BAA. I hope I can pick some up before it takes off like EXK. I actually like “unexpiring options”, as long as they don’t go bankrupt or dilute into oblivion.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Jakegint

      I try to pick juniors that at least have definable assets, so that in the worst case, they can get picked up by a stronger rival in a poorly managed situation… That only works in a rising metal price environment, of course.

      ______

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  15. Georgie Best

    Jake,

    What are your thoughts that we have Gold ATM machines now? is that a bit toppy in your opion or the start of a panicky run even further, bit of broad question, anyway your thoughts.

    Buying physical gold in Canada or USA, do you have opinion on what dealers are looking reputable?

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Jakegint

      Still kind of a gimmick isn’t it? I haven’t seen any gold ATM machines, have you? And from what I hear, they are egregious ripoffs in terms of price spread.

      As for buying physical, I’d find a reputable local dealer first, so you can look him in the eye. But I’d price using the national on line guys, like Merritt or Lear.

      _______

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  16. Jakegint

    Good comprehensive article explaining the Monsanto situation.

    Maybe best I’ve read.

    _______

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • jackstrawfromwichita
      jackstrawfromwichita

      This is the same article I linked to the other day that you told me was a year old

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • Jakegint

        I just read your summary about the stuff going off patent, which is old information. I had not read about the battle they were waging w. the AG’s office.

        _____

        • 0
        • 0
        • 0 Deem this to be "Fake News"
    • #6

      this is a great line in that article

      “…Monsanto sued DuPont for patent infringement in federal court in St. Louis, near Monsanto’s 504-acre corporate campus in Creve Coeur, Mo. (pronounced as if France had never existed).”

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  17. susie

    Jake, anything catching your eye in terms of interesting buys here? Or maybe you can do a post about interesting buys if we dip, I’m sure a lot of people would be interested in that:)

    Thanks to you, my port’s looking awesome.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  18. #6

    I got XRA at $5.88. Not sure how i got in below you considering you were the one who told me about it, but i’ll take it. Especially since it’s been one the best of the Jacksons so far for me due to the EXGMF it spun off. Gotta love free money.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • Jakegint

      I was a goof and thought I’d wait to get in “lower” — happens to me all the time. I’ll learn some day.

      _______

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  19. Hawaii Five0

    Jake,

    As for my mutual fund (pmpix), which has a lot of majors (abx, nem, lihr,gg,fcx, etc.) would you be a buyer here or wait for a pull back on spot gold?

    These funds are hard to play although they generally go up when spot gold does, albeit not in sync.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  20. TheV.King

    Are you V.King(ing) it????

    I have twice already today…..

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • DMG

      I have been vikodenting it all week. One minor benefit of getting dental work done. Goes very well with the vino.

      • 0
      • 0
      • 0 Deem this to be "Fake News"
  21. TheV.King

    Vino with a viko/vodka chasher

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  22. The Sax

    The jakegint machine: http://news.yahoo.com/s/afp/20100513/wl_mideast_afp/uaegoldoffbeat

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  23. TheV.King

    Warlord DMG….one question…..Who’s Annie?

    http://new.music.yahoo.com/videos/Michael+Jackson/Smooth+Criminal–30103171

    • 0
    • 0
    • 0 Deem this to be "Fake News"
    • DMG

      I can’t access that site here at work but seeing it’s related to Michael jackson, i’m thinking it’s probably some pre-pubescent little boy?

      • 0
      • 0
      • 0 Deem this to be "Fake News"
      • TheV.King

        I’m surprised that your job would block access on your computer since you could at any moment cut them to ribbons with your katana….

        We are really V.King(ing) it here on Gints page….

        • 0
        • 0
        • 0 Deem this to be "Fake News"
        • DMG

          I have just forced the Vp to commit Sepuku for dishonoring your request

          • 0
          • 0
          • 0 Deem this to be "Fake News"
          • Jakegint

            He is too young to remember – “Annie ah you oh-kay?, Ah you oh-kay An-nie, Annnie ah you o-kay?”

            You been shot by

            You been shot by

            Smmmmmmmmmmooooooth Criminal.

            ______

            • 0
            • 0
            • 0 Deem this to be "Fake News"
  24. TheV.King

    I believe Soichiro Honda once said “If you hire only those people you understand, the company will never get people better than you are. Always remember that you often find outstanding people among those you don’t particularly like.”

    I would go in your V.P.’s office and explain to him your current need to be able to fully V.King during the day, if he doesn’t comply then you should stab him ear with a letter opener….

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  25. Georgie Best

    Any thoughts here on BVN.
    $36.50 – 52wk high 42.
    PE 16
    ROE 32%
    net profit 5 year av. 52%
    550mil in cash (2.2bil t.assets) 737lias.
    volume quite good lately.

    any thoughts

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  26. Georgie Best

    Agreed, volume is picking up in this, other point here is they are not hedged on there gold at all, if gold continues or even drop’s backed there costs are very low with no hedging deravatives, margins will stay as strong as gold stays. Hedge’s took off in 08, very smart move for the bottom line and gives a bit of safety on the country risk, if gold stay’s strong.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  27. TheV.King

    Mr. Gint

    This “merger” is gaining serious speed….

    more on this later….

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  28. TheV.King

    Ha post 66…very fitting for The V.King. Any who thanks for all your support, all of the thousands of calls and e-mails were great.

    I am very excited to be here on easily the greatest of all the “fly’s” guys blogs. My hope is to average 3,000 different people posting on Gints comments. I also hope that my children go to sleep soon, before i’m too drunk to go to the gym. Tonight is light legs and some cardio….

    Anyway welcome aboard, fasten your seatbelt because it’s going to be a bumpy ride….here’s a little something that reminds me of the time Gint,The V.King and DMG decided to branch out from banking coin and pick-up a hobby…enjoy 8 and remember the V.Kings next pick will be announced right here tomorrow…
    http://www.youtube.com/watch?v=5i_D6oQO6b8

    • 0
    • 0
    • 0 Deem this to be "Fake News"