RT Minerals is Cheap and the Empire Just Ended
For those who still wonder if the US is a terminal state of decline, all you had to do was spend 90 minutes of your valuable time last Monday watching a fool debate a serial criminal and you would know the answer. I watched the first hour just to see if Hillary was going to collapse or not. Whatever her handlers juiced her up with managed to keep her going for the full ninety minutes standing and that has to be a near record.
I can’t help but think watching Hillary with her Cheshire grin that she would look a lot better in prison stripes. And the constant refrain going through my head listening to Trump speak says, “Will you just shut up?” How can one person be so wrapped up in his own bullshit that he doesn’t recognize what an idiot he sounds like? If this mismatched pair of fools is the best the US has to offer the world, the empire has ended.
The mainstream media charged with stealing the election for the 1% added a new charter member in the person of Jeff Bezos this week. It seems that Hillary and Kaine had their ghostwriters put some words together in a book they titled, Stronger Together.
It’s a #1 best seller on Amazon and probably has the worst ratings of any book in Amazon history. After two weeks or so of sales, 83% of those rating the book gave it the worst possible rating of 1. So Bezos steps in, doubles the number of top 5 ratings and evaporates thousands of bad reviews. If you like Hillary, you owe it to yourself to go read the reviews. If you hate Hillary you owe it to yourself to go read the reviews. They are a hoot. Now that Bezos has stopped altering the reviews, the negative reviews have climbed to 89%.
Some of the 5 reviews are enough to make you cry you will laugh so hard. And yes, perhaps trolls under the control of Trump may be behind many of the poor and sarcastic reviews but Hillary has her own army of trolls, why don’t they get off their fat ass and do something?
Meanwhile the wise leaders of South Korea are mumbling under their breath to the certifiable and nuclear-armed nutcase running North Korea that they were thinking of assassinating him. Good call, he wouldn’t dream of doing anything really stupid knowing he might be stabbed or shot in the middle of the night. Like seeing if he could manage to lob a nuke thirty miles from the DMZ into the center of Seoul.
One of the more interesting newsletter guys I have come across is Bo Polny of Gold2020Forecast. He’s made dozens of calls that were dead wrong but every once in awhile he nails one. He sent me something this week suggesting there would be a Shemitah crash coming on October 3rd this year. So if it happens you heard it here.
But he’s merely saying what lots of billionaires are saying. Baron Rothschild was quoted as saying, “We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates.” Julian Robertson of Tiger Global said, “I know the Federal Reserves all over the world are trying to ensure prosperity, but in doing so I think they are ensuring a huge bubble, which will be pricked, and we will all be hurt by it.”
Jack Baratta of Blackstone Group spoke at a Wall Street Journal conference in New York a few days ago, “You have historically high multiples of cash flows, low yields. I’ve never seen it in my career. It’s the most treacherous moment.” Even Chinese billionaires get it. The 2nd richest man in China behind only Jack Ma, Wang Jianlin was recently quoted as saying, China’s overheated real estate bubble is the "biggest bubble in history.”
Deutsche Bank is going to tank one day soon. After Merkel spoke last weekend she made it clear that Germany has no intention of bailing out the bank and their book of $62 trillion in derivatives. Deutsche Bank hit new all time lows in the days after she spoke. What she didn’t bother mentioning was that Germany couldn’t possibly bail out DB; they are far too big to bail.
Bad times are just around the corner. The debt bubble is going to burst taking most paper assets with it. There isn’t enough money in the world to pay off the debt. We either hyper inflate or default. When that happens, you might want to own some real assets and some are still cheap to buy.
Over the past fifteen years, I have visited hundreds of projects located on almost every continent searching for nearly every mineral. During that time I went to dozens of mining conferences. I suppose I have met all of the important writers out there. Each has his own way of measuring the potential of a company. Some focus on management, some on the technical aspects of the projects; country risk is often a key element and what the upcoming demand is for the mineral. I think I’m the only one who likes companies for no other reason than they are cheap.
From 2011 until late 2015 as gold and silver tanked and mining shares declined up to 99%, there were few rays of sunshine. As writers, we had to continue filling space saying something just to give our readers something to read. However a good set of drill results and a brilliant write-up did little more than provide a liquidity event where long suffering shareholders could dump their stocks on some other fool.
Yes, you had your Cayden Resources now and again where they went from $.72 to $3.79 sixteen months later. But those were outliers; the company had brilliant management and a great project. Even then, the $205 million that Agnico Eagle paid for Cayden was way too cheap.
In March of this year I found myself with excess time on my hands and I sat down in eleven days and wrote down what I wished someone had taught me many years ago. I called it Nobody Knows Anything and it can be had on Amazon for $6.49. One of the important things I went into in the book was that buying things because they are cheap and selling them when they get expensive works.
Have you ever heard anyone saying to buy something because it is cheap? Of course you have. We buy laundry detergent because we have a cents-off coupon and can save $.50 on a bottle. If our local Chevy dealer has a Labor Day sale on Corvettes, we at least think about buying one.
But with stocks, especially mining shares and the penny dreadfuls, we don’t want to buy cheap, we want to wait until they have gone up 500% so we know it’s safe to invest. That’s flipping daft and the biggest reason investors lose money.
I was pounding the table in December saying that the COTs were the most favorable in 15 years for gold and silver and I pointed out some stocks that I thought were cheap. One was Minco Silver. I didn’t own Minco Silver, I have no financial relationship with them, in short, I didn’t have a dog in the fight. But Minco Silver was selling for $.365 a share. They had $1 a share in cash.
Bull markets breed bear markets and bear markets breed bull markets. In December we had a bear market getting longer in the tooth than any in memory, COTs more favorable than in 15 years and stocks selling for 36 cents on the dollar. But the most important reason to buy in December was simply because like hundreds of other stocks, Minco Silver was cheap.
There are sites and writers who want to convince you that gold and silver were suppressed from 2001 until the top in 2011. If you can add and subtract, you know that wasn’t true. There are people who want you to believe that if gold and silver don’t go up every single day, it’s proof of a conspiracy. We also know that isn’t true. These are markets, folks, they go up and down like every other market. One day they go up and the next day they go down. That’s how it’s supposed to work.
Do you want to really make money in the market? Do this. When things are cheap, buy them. When they get expensive, sell them. It’s not that difficult. And remember, if you refuse to take a profit when you have it, you will end up taking a loss when you don’t want to. Those are the only options, either profit or loss and it’s your choice.
RT Minerals is drilling at Ballard Lake. Right now. It’s a tiny 450-meter drill program consisting of three holes under where surface trenching showed good gold values. They will be finished drilling in about three weeks. Expect assays back three weeks after that or so. With 12.9 million shares outstanding selling for $.085, the company only has a $1.1 million market cap. Now one of two things happens at Ballard Lake, they either hit something interesting or they don’t.
If they hit something interesting, the stock goes up. If they don’t hit anything interesting, they just picked up two more properties in Ontario for backup. They have enough money in the till to do tiny drill programs there so after the Ballard Lake program finishes, they plan on moving the drill rig to the other two new projects. They either hit something there or they don’t. If they hit something interesting, the stock goes up.
RT Minerals did a private placement for $425,000 that closed in May of 2016. With the placement they issued 8.5 million warrants at $.05. So any progress on any of the three projects they intend to drill would bring in some more cash for operations.
I don’t know the management of RT Minerals and I haven’t visited any of the projects. I have no idea of the quality of the projects at all. Most junior exploration companies in Canada are little more than lottery tickets. The vast majority of lottery tickets don’t pay off. At this point, there is only $.085 worth of risk in the company. It might be worth a tiny position for no other reason than they are cheap.
RT Minerals is an advertiser. I am biased and you owe it to yourself to do your own due diligence.
RT Minerals Corp