Picking Gold Stocks To Prosper
Picking stocks in the last six months was about as hard as shooting fish in a barrel. You could have bought Minco Silver in December during tax loss silly season for $.365 a share. They had $1 a share in cash. It went to $1.48 without the company doing anything. Gold Standard Ventures on the other hand was busy doing stuff. They were $.88 and went to $2.44 before settling down a little.
Silvercorp could be had at $.60 a share in January. Those who saw we had passed the bottom for silver and gold and snapped it up saw a 450% gain as it shot to $3.10 a share. There are dozens, maybe hundreds of junior resource shares that went up 100-200-300%. The past six months has been an incredible jaunt.
The ride’s not over but it’s getting both harder and more important to pick the right horse and the best jockey. I’m getting far too old and way too lazy to be looking at the racing form to pick the right nag. I’m going to start picking gold stocks the old fashioned way, I’m going to cheat.
If you want to know just what a steed is going to do in the next battle, look at what they have done in their last race. Winning riders find winning mounts and winning horses find winning riders. Luckily for me, CEO.CA just did a story on Prosper Gold and have done literally all of the hard work for me. Go read it; I’m too lazy to repost it.
I knew the CEO of Prosper Gold, Peter Bernier from back in 2009. I was sitting up front of a chopper flying us around looking as some piece of crap prospect in the Yukon for another company. Peter started pitching me on his company, Richfield Ventures. It was the greatest mining project in the history of the Yukon, he had put his net worth into it and nearly every hole was going to hit. Then he was going to sell out for big bucks and do it again. Yada, yada, yada.
I’ve only heard that particular story 617 times in the last month. Nobody ever says, “Well Bob, we have this total piece of crap project with a 25% NSR that has been drilled until it looks like Swiss cheese. We have yet to hit rock in a single hole. But we have a bunch of stupid funds dumping money into us and we are trying to see if we can waste it before they wake up. Once they start to rouse, we will short the shit out of the stock and hand ourselves a bunch of undeserved options at the very bottom. Then we will look around for the next worst piece of moose pasture or desert that we can find and we will do it again.”
I never hear that story.
Peter and his partner in crime, Dirk Tempelman-Kluit make the perfect team. Both of them started out about 230 pounds and six foot two. But somebody squished Peter. Whoever it was who put Dirk on the rack left him on a little too long. Dirk is long and thin. If he turned sideways and put his tongue out, he might double as a thermometer. Peter on the other hand could use a few more hours on the rack, he’s not all that long and thin.
The team is the ultimate one-trick-pony. They seem to think that just because they could find gold in the first 13 out of 14 holes and millions of ounces of gold while spending about $10 million in drilling only to sell out for $500 million in two years at Richfield Ventures that they can do it again. I mean, give me a break. Invent fire, design the wheel, do something interesting. Anyone can find buckets of gold just by looking.
What’s really funny is how far below the radarscope of investors they have been. While the shares have tripled since the first of January lots of other companies without this level of management and technical prowess have done the same thing in the same time frame.
Dirk is up in the Abitibi doing his technical voodoo. By the end of the summer they will be drilling. The company is just finishing up a $2.5 million dollar placement at $.25 and at $.30 for flow-through shares.
If you can get your kid to teach you how to fall off a bike, you could probably figure out how to make money placing a bet on this team. They make mining look almost easy and I have no doubt are thoroughly hated by their contemporaries.
I own shares, I have participated in the PP, and I’m biased. Prosper is an advertiser. Do your own due diligence.
Prosper Gold Corp