FWIW: Hedges Came Off This Morning At 2AM

Lost a bundle on the hedges, but more than made up for it price pops of what was being hedged. 

We are clearly (to me) in some kind of "to the moon" liquidity driven / inflation anticipating / earnings don't matter much market move. Who knows how far it can go, but I bet it can go a long ways as the big banks will all go bankrupt if they can't reinflate the assets underlying the non-performing loans. I'm pretty afraid at what the ultimate outcome of this will be.  

 

I'm back to 100% invested in Jr producing gold miners (well a couple of percent in explorers). Top holdings are GORO.OB, DMM.TO (may lighten as CEO sold some on Friday), OGC.TO, TRY.TO, CGA.TO, APG.TO, SMF.TO and LMA.TO.

 

Obviously this is not for everyone, but the gains to date have been substantial and the 2010 estimated typical price operating cash / flow at $1000/gold is under 3 while the same for comparable well-known miners (such as those held by Northbeach2000) is are around 6. That's my margin of safety, such as it is.

 

Best wishes and do your own due-diligence,

 

MontyHigh, www.worldofwallstreet.us

P.S., I'm finding that I have less of a need to express myself via blogging while my confidence and investing abilities appear to be growing. If you let me know, dear readers, what kind of material you have found to be of value this web site... I will try, out of the high-state of service, to keep that kind of material coming.

Comments

[AK]

Hi, Monthy. Just a follow up of Alex's comment. You may want to consider the next SMFs and LMAs to your list as these companies become more recognizable names. Two names I have in mind are: Orex Exploration (OX) and Avion Gold (AVR). I own both of them. While AVR will fit your value criteria nicely in terms of market cap, shares numbers, production, growth, Ox is a different story. It falls into a different category- an explorer with proven inferred resources. This week Osisko signed a JV type of deal with Orex to drill and develop their Goldboro property in Nova Scotia. Best regards, AK

[Alex]

I've always appreciated your deep value approach to the gold miners. Unfortunately, your current batch, like mine, isn't exactly deep value anymore. I'd personally enjoy a revisitation of some that didn't make your list 6 months ago, but might now be more worthy of consideration given 1100 gold - that's what I've been sleuthing around for daily - not easy to find