VOR

It has just been relisted on the ASX and went over the moon instantaneously! I am glad that I managed to top it up (2.2c) at least once, 3 days after I first bought (1.7c). How it managed to buy another tenement cheaply, I will never know. The guy who negotiated during the trading halt, must have been a successful used car salesman. But if he gets results, it does not matter either if he was a pimp!

ERN and TPT

ERN has just announced that it has acquired a stake in DRC, looking for gold. The trench reading is great but what is this in JORC compliant resouce, you will never know until proper drilling is done. But if the trenching has good grades, then you can at least be optimistic. So I have taken a small 'calculated' gamble.

I got rid of RSG as it has been hovering around my buy price without any great announcement lately. This money is now channeled into TPT, exploring offshore in Morocco and ERN. The leftover was used to purchase SAU share purchase plan. SAU is raising money for exploring near Kalgoorlie. It has uncovered some good grades there but I don't have spare cash :-( HGO, GDY and BOW are all asking for more cash soon.

AFR

This company presented at the most recent Proactive meeting in Sydney. I like the coal story and bought a small parcel when it fell a bit. But it does not have the infrastructure to move the coal to the ports. Ooops! The good news is the Indians are coming in and may be prepared to fund a railway line. The coal surface is shallow, relatively. And this company is finding more coal. The story is the same for Aviva. But Aviva is smarter, it went to Kenya and look for gold instead!

Today, it announces more coal in its tenement so I expect the price to go up a bit. It has explored the most lucrative parts of its tenement.

NKP

Today, the share price will fall. The market does not like it if a court judgment is not in your favour. The $6,400 question is do you then buy more of it as the principal deposit is not affected? And the decision is not as clear cut although it is certainly not positive.

BDR and STB

Some of my stocks keep delivering. But it also means less opportunity for topping up because the share price keeps rising. Hence I have only bought once in Aug 2010; it has risen 122% in under 100 days.

It has been delivering good results in the New World and in WA. I bought into BDR when it gave out a great announcement in the ASX. And it wasn't the first good drilling result. The rise in its share price was so sluggish!

Meanwhile STB is also doing the same. Drill and thou shall find! Good results after good results....

However, it isn't always that predictable, in that I expect all my stocks to continue to deliver yet a few always disappoint!

AMX

I don't understand this. In the midst of a down market, with gold miners marked down, this one went up by around 10%. There is no announcement nor a speeding ticket from the ASX. So why does it go up? I can only suspect inside information. Or someone wants to take it over but then not all the drilling is done yet.

Proactive

I received the weekend Proactive summary late, today. I only look at the Proactive Investors Australia section. I take great delight at knowing that so many of my stocks are doing well. Yet, good news do not always translate into jumping share price. But sometimes, there is a delayed effect. Share prices will certainly fall today as the PIGS' woes affect the market.

Register for free and get the weekend newsletter. More rewarding than reading Sports news.

http://proactiveinvestors.com/

KGD

I don't own any KGD. It was recently floated at $1.75 I think. It was expected to make stagging profit but it didn't. And then even after a good drilling results, it still can't make it over its float price.

On the Saturday before last, in the AFR, there was an article on how to pick which IPO is good and Kula Gold featured as an outstanding buy for all the good reasons... yet when it floated, the timing was not perfect. You can be sure that if the share price continues to fall or stagnate, my name will be on its register. I don't expect a roaring share price as it has been factored in. So if you want thrill, this is not the company.... unless new drilling results come through and show excellence. I have been picking up BSR which is dropping in share price for unknown reason.

TPT

Whenever I read an oil explorer's presentation, you think, this is going to be big. But there are so many of these promising companies. They are relatively cheap to buy but they could come to nothing. Possibility of billion barrels of oil is just a statistical estimate. However, if you put in a small amount and not expect much, then the loss is never as painful!

Well, I put in a small amount for MMR and it has NOT even discovered gas yet and its share price has already gone over $1!

Note the big gap between buy and sell prices. That means there are few shares traded so you could also end up paying a lot but selling cheaply if there is a forced sale.... unless it hits gas or oil. Since I got rid of staid WOW and QBE, I might as well have a go at this company but I am not paying 27c for it! Monday will be a down day so there will be opportunities.

Changing world of the nouveau riche

My wife has just returned from her pilgrimage to The Maldives. I don't see anything fascinating in blue water or beaches. And island cuisine is basically just seafood barbecued or tossed in hot salt water, with coconut. I don't dive. And I find recreational fishing cruel. Would you like a fish hook on your lip, then taken off and told "It will heal"?

She tells me over the few times that she has been there (while I work and invest), that the clientele has evolved from Caucasians to the Orientals. The pockets of the Europeans and Americanos are shrinking!

In 1980, when we went to Bali, the Aussies could only watch the Germans, Japs, Italians and Americans, and yes The Brits, eat in the hotel while we had to walk to cheap pondoks (huts) to eat our non-included breakfast. I remember I could not get served in Duty Free Shops in Perth because I am an Asian. Yesterday, we ate at a Chinese restaurant, hidden along Albert St in Circular Quay. There were busloads of Chinese tourists eating their dinner there. If it is not for the Chinese visitors, the Australian tourism business would have been devastated this year.

The market on Monday

While I have been heaping adulation on myself... I am afraid this Monday will be a bloodbath for my stocks. When it comes to sentiment, the Yanks predominates, even with Thanksgiving atmosphere prevailing, China is getting the inflation cold while Australia does the sneezing, the North Korea gangster are agitating for a fight, the PIGS are still pigs when when it comes to economic management and the price of commodity is falling.

The good news is oil has not fallen much, gold has not fallen much, uranium has gone up steadily, the PIGS are wee little economic PIGS, while AUD has come down a little. Em... maybe I won't suffer that badly!

Leaving it to the Experts?

This morning, I glanced at my GSJBW portfolio from early 2007. I have read in the press about highly regarded "expert" fund managers. When I see what is in their portfolios, I think those articles were written by people from their own industry. How can they be brilliant if within their top 10 investments, they have included the likes of mostly NAB CBA, ASX, WOW, WBC,ANZ, QBE, LEI, WES? Mine has GIR, EXT, MMR (very, very high risk), SIH, LYC, GTE, CDU, AVB, AMX....

When comparing my own managed portfolio, from 2007, it has doubled while those from GSJBW has shrinked by 50%. These figures are also affected because I added contributions to my own portfolio but had been selling down my GSJBW portfolio. Still, the rise far exceed the contribution and the fall exceeds the selling. You can only add that much to super per year per person and I don't frequently sell. Off my head, the figure is similar with GSJBW for the portfolio managed by Citibank who were paid 1.5% per annum while GSJBW was paid on trading.

Leave it to the Experts? No thanks, especially if the portfolio is not directly their own. Plus they are expensive for the service received. Sometimes, I cannot believe how well my own selection has done. Not all are successful but good rises are the norm. However, my stocks are more volatile and carry higher risks.

FNT

Here is an interesting PNG gold explorer. No one seems interested in it. In fact, lots of Aussies hated it for the wrong (ethically and business-wise) reason. It was going to mine part of the Kokoda Trail. The locals were for it but FNT's decision was seen as treachery yet it has the right.

When it started announcing wonderful statements to the ASX, no one listens with commitment... I am an exception. And then yesterday, it made another one... and this time, people are listening. So it went from 7c to 9.9c. Sweet!

And now watch ARX, HIG, HGO, ROL, NGE, SIH, OSH etc, etc.... And in West Africa, pay attention to BSR. And in Mongolia, watch GMM. And in Somalia, watch RRS. Of course, I am watching... I own stocks in them.

RBA Governor

Mr Glenn Stevens was echoing my words! He prefers banks to be very profitable so that they remains very strong, stable and reliable and do not take crazy risks. There is enough competition; high level of competition means crazy risks. Is Wayne Swan suffering from tertiary syphillis? He has forgotten that GFC was caused by funny lenders, handing out money cheaply to... voters! Meanwhile Joe Hockey has shifted his brain from the skull to his rectum.

The truth is most Aussies own bank shares! And if the banks provide a service, it can charge for it. Politicians thrive on being popular, not on being clever.

Koreans

If a Korean warrestarts, the world stock market will tumble because Korea is a significant part of world trade; not any of the PIGS. But the good news is it will be short-lived. Why would a prosperous China want a full blown war on her doorstep? Hopefully, the gangsters running the country will be removed. In the longer term, it will be for the better.

So when the market tumbles with the re-starting of skirmishes or 'war' there, this will present a great opportunity to buy. But it won't happen straightaway. The problem is picking the trough. A revolution cannot occur in North Korea while China is backing it.

Mongolian stocks

I bought 4 different Mongolian stocks in the last 2 months. AKM up 219%, HUN up 26%, VOR 96% (trading halt), and GMM down 31%. You cannot win on every stock but these are overall very profitable. Sometimes, it pays to listen to an outdated anaesthetist!

One patient today asked me to do what he wanted from his anaesthetists. First no mask on his face. I told him that anaesthetists who comply are lousy anaesthetists as they should always preoxygenate and why we do it. I asked him to hold the mask himself. Then he asked me to give him intravenous sedation before he goes into the theatre. I said it is illegal and a criminal practice to give a sedative and not monitor the patient CONTINOUSLY. You can accidentally kill a patient that way and that is why it is banned. Don't believe me? Just ask Michael Jackson, with only 5 mls of propofol. People pay me for professional service, not for an appeasing pro. When he woke up, he wanted to shake my hand!

Perhaps, my readers would like to know that I don't post stocks that I think are going to be a loss.... but that can happen.

Price of metal

Today looking at kitco.com, the price of all metal has fallen by 0.4% to 3.2%... except uranium which has gone up steadily over the last few weeks. What is happening? I have no idea except that 2013 is the year that the Russian get out of being conned into selling uranium cheaply to the Yanks. Suckers! Now they want to buy Australian uranium for their nuclear station.

Anything cheap amongst uranium stocks? Go and look at RCR Reports. If the price keeps rising as it has been, uranium is the new wonder energy material for... making money.

ELM

Some investors are incredibly impatient. There is a delay in assaying the drill samples so they sold and walked away. The lab it uses is overwhelmed; it is looking at a second lab. Stupid, stupid, stupid investors!

What does this mean? Well, I love dumb impatient investors! So on Monday, if I have spare cash, this is one company I will look at to top up if the share price continues to drift downwards.

Today, because MMR went south, my main portfolio is near stagnant. But the other portfolio has a beautiful rise so it is still net alpha for me!

Still hoping..

I am still hoping to pick up SXX and RMR. The two companies presented at Proactive in Sydney recently. Eventually, I will get them at whatever price unless they have gone crazy. ASX Guru highlighted RMR.

FML

My WOW has split into a few companies and top-ups. The first one I touched was FML after reading Our Man in Oz....

http://www.minesite.com/minews/singlenews/article/focus-minerals-reveals-a-high-grade-gold-exploration-target-in-western-australia-that-looks-uncannil/1.html

For newbies, this guy is one of THE best mining journalists. He even visits the sites or speaks directly to the boss of the company. I get his articles for free but I am happy to treat him to a few dinners! Strangely, few people actually follow him because unlike David Haselhurst, his stocks do not jump when the market opens. That is why I love his articles... I can actually act on his knowledge.

When decent gold is found unexpected... it is either planted there (ie a fake) or it is a wow! So far, a lot of West African miners, ARX, AVB, EKM and now FML have experienced this pleasant surprise. Hope there will be more!

Tin

http://www.theaustralian.com.au/business/mining-energy/tins-big-day-out/story-e6frg9ex-1225960851804

Today, I bought VMS after reading its ASX announcement... and the share price didn't move much. I have already missed the boat once or twice with this company.

And based on a recommendation by a share tipster, I also collected KAS. It has fallen from its peak so it was nice to buy before that Robin Bromby article above appeared! Tomorrow, the US market is closed for a public holiday. So the rest of the world will be directionless. I have owned MAK for some time now. CAP has more than doubled since discovering Fe near Broken Hill and now has tin as well! For those interested, CAP was spun off from GIR.

Beautiful day at the market

Beautiful? It only went up by a miserable 0.2%.

I will tell you why it is a beautiful day.

I put a low price on some shares and got them. I put a slightly lower price on some shares and got them. Where do the $$$ come from? Well, I got rid of WOW. When the market recovered in 2009, the first company I expected to do well is WOW and QBE. What a huge disappointment!

Today, one portfolio went up by 1.5% and the other 2.5%. The latter is a fluke; as my regular readers would know, my MMR has become a huge bubble. If it find gas in 3 weeks' time, it will be a gas tanker, not a bubble. But if nothing is found, then it will be pricked.

TRF

A big chunk of TRF is ROL. ROL is going up and up and discover more and more stuff in Indonesia... yet TRF is falling and falling and falling. Can anyone see the sense? So I put in a buy for a top up parcel at 41c but I might up it if it does not fall to my buy price.

How do people price their own investment to sell?

Notification

It is impossible to note every single significant news on the ASX. I often rely on good journalists, tipsters or certain websites to highlight a company. By the time, it becomes disseminated public information, like from Pure Speculator (Robin Bromby), The Speculator (David Haselhurst), Hotcopper or ASX Guru, it will invariably jump in price.

So this morning, Our Man in Oz highlighted FML in Minesite and details of the rock chip samples are out on the ASX announcements, mean the price of FML will go up. So should I buy or not? That depends on how crazy it gets. Sometimes, the price races away to fall at the end of trading.

DRA

Luckily I only look at my own blog as a diary. I will be pulling my hair out if I were a financial adviser to my indifferent clients.

Today, DRA announces 20m at 34g/t of Au at 140m deep in Finland. This company has been telling us how good the grade of gold there is. Yet, the market has been slow to respond. It took a long time for my DRA equity to turn a profit but it won't be long before I collect the first dividend as it is already a producer.

Uranium spot price

It went up by another dollar. I have sold some of my uranium stocks or let the options expire but kept the big ones. There is real movement now in this mineral, a slow creep up. The important date is in 2013 when the Russian are through with being conned by the Americans. I could not get any SXX as it has flown.

CAP and MEP

Someone posted in Hotcopper about these 2 companies. You just cannot understand why the share price is so low relative to the size of Fe ore they have found (adjacent to each other) near Broken Hill; not to mention other minerals. For me CAP has gone green since it announced that discovery a few months ago... but MEP is languishing yet has a great reputation in the mining industry.

Hopefully, next time you hear from me about these companies will be when I am talking about the next lot of 10 baggers.

Ten bagger

A ten bagger is anything that has gone up by 10 times. I thought I only had 1 but...
... I also have companies/investments that have disappeared from the face of the earth.

Sometimes it goes up very high and then gets pricked. Or sometimes, it cannot sustain that valuation and move down a little. But if it keeps going up and up, do you sell? And not all the parcels within one company go > 10x because I do top-up at higher prices.

Well, every time I sell MMR, I make a beautiful profit and then a short while later, the share price goes much over my selling price. This one is closer to a 20 bagger.

AVB went up and up but has settled at 5-7 times.
GTE has..
SIH has...

Why some go up >10x and others don't? If I have the answer, I would flying in my own private jet. Or rather my wife will be...

I had a company CMR which went nearly bankrupt. The chairman wants it to be bankrupt so that he and a hedge fund can buy it cheaply. Yet the inground mineral is worth > 1 billion AUD. There are some ruthless businessmen out there. If the bastard gets his hand on the company, he is onto a 10 bagger or 20 or 30, at the expense of existing shareholders. Luckily, there are some very principled and determined shareholders, who at their own expense, have managed to stave off the grubby hands of the chairman.

CNL

Never heard of it? What about Victoria Gold? Well, CNL used to be VGM and then soon after I bought VGM, it changed into CNL. Then it became a loss but today, it has performed a miracle in the midst of a down market. But I don't know why it has jumped. Inside information?

It isn't gold that it is looking for now. It is phosphate in Tunisia. We, Aussies are everywhere!

I heard it through someone posting it in Hotcopper.

RIA

This was a loss for a long time (first bought in mid 2008, remember what happened around that time?) but I should have bought more! Why? West Africa is not only hot for gold; that is a well-known historical fact. What is really hot now is oil offshore. Already, Tullow has discovered a > 1 billion barrels off Ghana. And RIA's tenement is only just over 50km from it. And surrounding rigs are starting to drill. RIA is a slow starter.

I topped up RIA in late Sept 2010 at 30c using my full entitlement. There is a very nice write-up about RIA in the Portfolio section in Wednesday's AFR. Presumably no one reads this.... If a neighbour finds oil, or it finds its own oil, then the share price will rocket up. A brave soul will buy it now but the reward could be phenomenal.

Grotty day at the market

But not for me! I was expecting another blood bath but when I saw DJIA Index (ie predicts the American market the next session) was green, I said "It won't be a bad day at the ASX". Nice to be right. But I wish some of my biddings translate into cheap shares. None. Set the price too low to buy.

What would I buy today? Definitely BSR, ABU and TRF. I didn't see how low TRF got to, otherwise, I would have bought some.

RMS

In spite of excellent gold grades and great announcements, this company has taken a long, long time to recover. I bought it before GFC so you can imagine how big a loss I have sustained. But with SPP in Apr 2008 and recent top up at 46.7c in Aug 2010 when it again announced a new gold area uncovered, today, I can announce that with a falling market, my RMS is now in the green zone! A few years from now, it won't matter that much, what I paid in 2007 for it... I hope!

BSR, GMM and ABU

BSR has dropped to 17.5c! I topped up yesterday at 19c and most of my stocks were bought at =>20c. The price of gold has not fallen below USD$1300 per oz and the AUD has fallen to under 98c. That means price of gold in AUD has not fallen much. Most of my West African gold miners are doing well in spite of market falling.

I don't know why BSR kept falling in value. Maybe someone knows that the next drilling result is bad but this is illegal and I don't know if this is true. This BSR is actually an explorer AND PRODUCER! Why it is falling, I have no idea other than attributing it to silly sellers. I have always loved silly sellers; can't get enough of them!

Not only BSR... I have also topped up ABU at 3c. CQT didn't give me all my SPP application so I have a little spare cash to play with! GMM didn't drop far enough for me to pick up a few more shares.

Koreas

Don't you love the North Koreans! Nothing to do so might as well fire a few salvos into the South. That has sparked a major fall in most stock markets. Great for buying!!! I will be watching. The North Koreans have got no money to fight and China won't want to take on the Americans. War is very, very expensive but the gangsters running North Korean are not very good with their economics.

So this will be a short term testing of the patience and tolerance of South Korea.

Meantime, markets will fall today but I note DJI is already up for tomorrow.... It cannot keep falling when USA figures are better than expected.

MNC

Someone in hotcopper highlighted that this is a company that is grossly under-rated.

http://www.minesite.com/nc/minews/singlenews/article/metminco-drills-the-giant-los-calatos-copper-porphyry-in-peru-but-the-buyers-may-come-in-next-for-g/1.html

I bought when it was 23c in Aug 2010. I have made some paper profit; 36c at the moment but it has gone higher than that. You will only make a lot of $$$ with MNC when a big boy pounces on it. When? Inshallah!

7 weeks low

The ASX is at a 7 weeks low apparently. Because my stocks are high risk, they were marked down drastically today. But compared to 7 weeks ago, I am still ahead!

The Koreans are exchanging fire at the moment, the Americans are still struggling and China is trying to control its economy. But gold is relatively steady, oil is still over USD$80 and commodities have not collapsed. The PIGS are big irritants but small in stature.

I am forever an optimist. Big fall today, another fall tomorrow and then the law of average will compensate. So I bought more today but my cash from sale of QBE is vanishing! I put in lows for some stocks and collected them and also 'gambled' on MNB. Can't spend $15000 on any SPP anymore :-( until I sell something.

GOA

http://www.asx.com.au/asxpdf/20101123/pdf/31v29ffgwl55kf.pdf

Pssst...

Read the presentation. Only recently have I made a paper profit out of this company. I think my faith will be rewarded soon and in a very nice way. There is another company HIG that has very similar future.

DJ Index

We remain servile to the USA. If it falls, it is not common for Aussie ASX All Ord to rise. While we are dependent on China for trade, it is US sentiment that rules. After all, there is no bigger consumer than the Yanks. The good news is the price of gold has not moved much. After China raised its interest rate, commodity prices fell markedly but this has stabilized so we can look forward to a less disastrous fall today,

Whenever the market falls, I look at it as a good time to buy although I am running out of cash unless I sell. Any fund manager who kept QBE or WOW should not be complimented. These were expected to rise after GFC but it is already nearly 2 years and nothing has much improved. WOW is facing competition from a better run Coles under WES. Maybe I should get rid of my WOW.

BSR, GMM and ABU

These have been falling and falling. Is there inside information that the next drilling results are bad? That is illegal. So I put in another bid for 19c for BSR, 10c for GMM and 3c for ABU. Maybe I have blind faith but I love to buy stocks when they are down... without the bad news. GMM released one recently which looked bad but it specifically state that it does not affect its anticipated deeper potash deposit.

QRN

If you bought QRN in the float, you would be laughing at me. Well, let us see what happens in a year unless you took a stag profit today. The market was surprise by the rise, too.

ASX today

I love it when I collect alpha. While MMR fell a lot today (after massive rises), I still collect alpha. There must be signs that the USA is recovering and Australia might not be as badly affected by China raising its interest rate. Well DJ Future is up at the moment :-)

Mrs Tey knows. She is having a good time at The Maldives.

I have mentioned Indonesia as a profitable country to invest in. Full of corruption, cronyism and Muslim fanatics, yet, you can make money out of it! In spite of me harping about SIH, I doubt any of my readers has laid a cent on it. My last top up at 17c was in early Oct 2010. 26c today :-)

RRS, OEL

http://imagesignal.comsec.com.au/asxdata/20100826/pdf/01091581.pdf


http://www.proactiveinvestors.com.au/companies/news/11817/range-resources-share-of-gross-oil-in-place-at-republic-of-georgia-wells-estimated-at-1-billion-barrels-11817.html

Strange to use words like "unrisked". But based on the above report, it was irresistible. RRS is THE most adventurous Australian miner. You hope your son or daughter is not working for them overseas.

Is it brave or stupid? Well, the potential oil fields are in Georgia (relatively safe) and in Puntland in Northern Somalia. So today, I collect RRSO at 5c. The exercise price is 5c, too in Dec 2011. The ordinary share is 10.5c so why not buy the options?!

I have a big loss with OEL. But note that BHP is farming into its Phillipines block. And most recent seismic data suggest high potential for oil to be discovered off Palawan island. Well, I hope. See, not everything I touch turns to gold or oil... but it might still do so!

QR National

Anyone who bought this share has to have his/her head examined via the anus.

No, not that it is a bad company. The days when government (state or federal) price the selling price to give some stag profit are gone. Also when the press and lots of commentators think it is over-priced, why buy? Of course, all these smart people could be wrong....

Here is an adage: Never buy any float that is printed in the common tabloids (the AFR is okay). You are competing with suckers who are willing to part with their money without knowing what is real value. But if you have applied, at least you are not going to lose it all. You just need a colonoscopy to check your brown matter; not grey matter. And stop reading my postings; wasting your time!

How to choose an IPO

Good and cheap floats.... you will never get them unless you know the broker or you are a shareholder of the parent company (sometimes you get priority).

I squeezed out some money for Thomson Resources, spun off by MEP and a JV partner. Because I get priority, I decided to buy some. And it is so nice to see a good write up in SMH or AFR or The Australian, indicating that the float will be successful. I hope so!

On the weekend AFR, there is a good article on how to pick a float to buy into. And what to stay away from. I have not joined up with Paterson so I have no special priority for most floats other than when CommSec is involved. Remember Platinum the fund manager? Well, I got priority and sold almost immediately for a nice stag profit because I think lowly of Mr Kerr Nielsen but the market thinks highly of him. Emm.... I was right! I bought because I knew the dynamics of that float would involve institutions buying up after the float to make up their "averages".

Proactive presentations...

About a month or two ago, I went to another Proactive meeting and SLR presented. I like its story and it is a gold producer and explorer. Both aspects are doing well. I bought when it fell a little but it has fallen even further. However, I am an optimist with this company. Next resource upgrade is in Jan 2011. Most of the main areas where they are mining have not been drilled beyond 100m. Gold mines in South Africa are a lot deeper!

The share price will get a lift when it announces drilling results... if it is good.

After that meeting, I also bought AVA because it has tenements with lots of greenstone belt in it. It has gone up by >70%.

Last Wednesday, I went to another Proactive meeting for the last time this year. This time I like SXX, RAM and AFR. If the price of SXX does not come down next week, then I might just buy it at market price. At the moment, I put a buy at 2.8c. Even at 3.5c, I reckon it is still great value.

JMS

Brian Gilbertson used to run BHP Billiton before he was fired by Don Argus, the Chairman for talking to RIO about amalgamation without consulting the Board. He ran Billiton in South Africa until it was taken over by BHP and he became the CEO for less than a year, I think. He is back in Australia via JMS. From profit, then loss, then bigger loss to smaller loss, no loss and now nice profit, this JMS will ride on his skill and manipulation. However, this is not someone who is going to care for the company... other than his own shares. So if he takes profit and run, then JMS will sink. At the moment, some journos are sceptical about the company's valuation. I will stick with it while BG is THERE. I reckon it will be a fun ride; it has been recently!

MMR

http://www.adventenergy.com.au/Business%20Excellence%20Magazine%20Corporate%20Brochure.pdf

When you read the hype, it is so difficult to disbelieve it. And if what it estimates, turns out to be true, based on 'expert opinion' by 2 firms, then this company is worth over 1 billion AUD... or a lot more.

Is it too late to invest in it? Of course, it is late because I have been harping on this company since the Stone Age. Because I bought when it was 5.8c with lots of free options thrown in when no one wanted this company, I am onto a huge profit with it. When it rose so much, I daren't recommend it forcefully. Most people don't have guts for 'funny' companies and frown at me when they lose... especially spouses. I even topped it up recently in early Oct 2010 at 50c a share. Brave and stupid? :-) $1.08 on Friday with an 18c leap and a smaller leap to 90c on Thursday. Intuition told me not to sell a parcel on Wednesday.

Whatever price I have sold in the past, the current price is higher! I nearly sold some last week, but I pull them out. I have already recouped all my capital cost for this company so even if it bankrupts... I am back to square one.

Whether it is "too late", I don't know but if you look at the hype, and you put $2000 into it to enjoy the ride, then it could be worth 10x more. But if the drilling turns out nothing, that money you sink in, will also disappear into that big hole! The drilling costs around $20 million. At 1000% profit, anyone who profited will need to take me and my wife to Quay to eat the Snow Egg. Of all my companies at the moment, this one takes the prize for impending 'excitement'. Approval has been granted for the first hole to be drilled and the rig has been contracted. Bob Brown is not happy....

If it hits gas in sizeable quantity, I am going to have Paris Mash at Guillaime AND Snow Egg at Quay AND Belly Pork at Takeyama again (I will take a week off to eat! Easy Come, Easy Go), and Cilla might get her Paspaley...

Anyone going for a ride? Or small ride? Anyone reading this note, please leave a comment. Then I know that you can't say you didn't see it coming.

Changing of Stock Code

This and placements are the most irritating and unfair features of the ASX. When codes are changed, the history appears to disappear. You have very little say in it, just like for remunerations. Companies should leave their names for historical reason, changing it is only a PR exercise, often expensive and futile. BHP is still "Broken Hill Propriety" but abbreviated.

With CNL, at least it was making a paper profit for me. Changed to Celamin from Victorian Gold. While it is now interested in phosphate in Tunisia, it still has gold tenements.... in Victoria.

And of course, placements only reward the companies' croonies and its broker's. And guess who has also got a placement going on at the moment... CNL. It was making me a profit until the placement. I bought it just before the placement. Fuck!

Mad Stocks

I call them "Mad Stocks" because they have been crazy. If I knew how they are going to rise, I would have put in a lot more money into them. There is no element of skill here, just luck as I had not anticipated this kind of rise when I bought them.

MMR (more recent hype about chances of finding gas), STB (just announced world's shallowest deposit of potash in Eritrea), SIH (found more gold in Indonesia), AVB (but it has been falling although still very high), PIR (West African gold miner), EKM (discover a new gold zone), GIR (whatever the reason), GTE (near SFR), AMX (more gold found), AZH (more gold found in Guyana), EXT (more and more uranium found in Namibia) and LYC (Japanese now interested in its REE).

Other than SPPs/Rights issues, I am very hesitant about buying more of these stocks. I did top up AZH recently when it gave a good announcement but the share price fell! And I topped up EKMO when the share price started falling for no good reason other than profit taking. Last time I topped up GIR was in June 2010 when it fell to $1.89.

Those are my Mad Stocks. I have a much longer list of stocks that went up by just over 100% in the last year and an even longer list that went up by >20% over the same period. I wish I got rid of my blue chips earlier! I am looking forward to BHP buyback to release some more cash. Nice to earn more paper money from stocks than giving gas! Why? Less responsibility and more sleep :-) And wife does not mind paper work as much when there is good profit! My surgeons don't have to worry about me quitting medicine... I love my nurses!

ORM

Never heard of it? Neither did I until recently but what appears to be so good with their result is shunned by the public. I bought the options and it went up and up but now it is below my buy price. Em... I think it is a good time to top up when the market does not want it.

REE is publicized by any miners at the moment but the truth is unless there is a lot and a lot of the valuable ones, and there are manufacturing facility and customers, then REE companies are just hype.

http://imagesignal.comsec.com.au/asxdata/20101027/pdf/01113107.pdf

MMR

This is my biggest positive but potentially my biggest negative in my portfolio. The company has been releasing announcements after announcements stating the prospective amount of gas to be discovered in offshore Sydney Basin.

I have already sold some parcels so that most of my capital has been recouped. On 5/10/2010, there was an entitlement plus new shares on offer at 50c. I bought all my entitlements and applied for doubled that amount of new shares. I got the lot.

Today, it gave me all the alpha I needed. It has gone up to $1.08; more than double in 7 weeks. My cheapest parcel was bought for 5c. Even cheaper still are my options... free and worth 86c. I was going to sell a parcel for 90c but I pull it out when I read a new assessment suggesting that gas find is highly likely. If nothing is found with the first drilling, well, the shares could tumble like a deck of cards.

I wonder whether any of my readers have bought MMR.

The same could happen to PCL.... I wait for the first drilling result!

Proactive presentation

5 companies presented.

SXX claimed it is worth more than $15 million but ASX values it at $3.8 million. I asked the CEO if he was overvalueing his company. He said it is undervalued. In fact, on one bilglyri tenement in NT, it had been offered $15 million a year ago and uranium has gone up in price. I put a buy at 2.8c but didn't get any.

AFR has discovered coal in a big way in Botswana. It has jumped so I think I have missed the boat when it was very light. What small amount I got is probably overpriced. It has coal but cannot transport it for export and has to wait for Indians or the Botswana government to construct a railway.

RMR is promising because it is mining in Greenland. I asked the CEO if tantalum is so promising whyhas Talisson mothballed its tantalum mine in WA. The Greenland parliament is so ineffectual so those are problems for the company. But it is good to get in while it is so cheap.

I am not so crazy about a new Flinders float, mining for diamonds. While price of diamonds have gone up, it is difficult to get diamond miners to jump in value.

PVE? Only if it discovers more gas in Italy but the pockets are so small compared to those in Australia.

Life as a gasman

Medicine is a wonderful career. There is almost no boom or bust. Everyday, nature is unaware of what is happening with stock markets. The mathematicians will tell it that it is predictable but the only thing predictable is that people do become patients. And servicing patients is more rewarding but with a higher stress level.

But I don't fret over market falls. My debt is easily serviceable... and the next day or weeks or even months later, the markets will correct themselves. In fact down days are great days for buying! Nobody wants CVX in spite of new greenstone tenements but people are piling into AZH with just one good drilling result. And BSR is still falling. Yes, price of gold has come down but it has not plunged.

Note: DJ Futures is already up! So I will be on the prowl....

BSR

For those interested in BSR... this is now my worst performing African gold stock. Today, I expect CVX to rise (or maybe fall a little due to market sentiment) due to extra greenstone belt tenements acquisition.

http://www.asx.com.au/asxpdf/20101117/pdf/31ty41twq57q90.pdf

When you read the CEO's presentation, you wonder why the share price is falling!!!! I have already topped up a few days ago and it went down a little before coming up.

American sneezing... after PIGS catch the cold

Australia will definitely catch the cold today!

I think I picked the right time to sell QBE... the lot. So nice to have cash to splurge today :-)

But it is better to wait for tomorrow. China's mineral requirement is not going to vaporise in 1 day just because an increase in interest rate there. Commodities have plunged by 5-10% in value but the AUD is down 1%. Gold is retreating too but it is still over USD$1300.

It is the PIGS' fault, affecting the USA. Portugal Ireland Greece and Spain.

MGY and GLF

I bought (2.8c) and sold (4.2c) within10 days in the middle of this year to make a quick buck because there was no additional news to account for the rapid rise. But the price continued to go up! In fact, it went over 20c. Why? Someone knew about the next announcement.

But it has fallen back from the plateau and in spite of anticipated good news from new discoveries, the price has hovered around 10c. So today, you will notice just 2 trades for the whole day... I bought both those parcels just before the close of trade. Anyone interested in Madagascar? No, not the movie....

Now, another stock that explores in Madagascar is GLF (recently). I attended a talk by the CEO and liked what he presented (vermiculite in Uganda) but it fell and fell and fell. After buying at 4.2c a year ago, I was just about to top up my GLF but today it jumped up. Someone, with a deep pocket (>$400,000 traded today), must be thinking like me. Well GLF had a presentation to Minesite and obviously some investors liked its prospect. So my loss on GLF is not that bad anymore! But I wished I bought earlier this AM because I had already planned to top up. It jumped from 2.5c to 3.6c. Ouch!

ABV

For a strange reason, I topped up at 1.7c in 2008 and recently in Aug 2010. When there was a share purchase plan, at the end of GFC, few people were interested in this company; it was only 0.6c, less than 1c.

If you listen to the CEO presenting in brr.com.au, you will find the future rather rosy and... it has started to make a PROFIT. Be aware that this is a one product company. I have made 100% paper profit on it and looking forward to a dividend in a couple of years' time.

QBE

One of my biggest drags after GFC is QBE. I expected it to jump because equities have risen in value. Instead, nothing. In fact, not nothing but continuing downward trend.

I did sell a parcel last year at $18+ when I was so disappointed with it. The management is held in high regards but why is the share price not performing? Yesterday, I read that the prospect is getting worse. Why? Most of its investment is in the USA where the government is printing money. AUD is appreciating so that makes QBE's foreign income less attractive.

So I have sold all my QBE. I am looking at MGY.... and keeping some cash for capital gains tax. The good news for QBE is that it will become a takeover target but I am moving my money onto the small cap resources.

ZGM

I heard the CEO talking up the company and he mentioned something like some day, you will wonder how you could buy this company for so little. I paid 8.2c in late Sept 2010.

Actually for a while, I wonder what he was talking about as the share price drifted lower! Well, I topped up a week later at 7.5c. In under 2 months, it is 40% up. I wish I have more companies like that!

GMM

How do investors read announcements? GMM put out an announcement recently but stressed that the lack of minerals in the superficial drilling results does not affect its anticipated deeper potash deposit. The share price plunged. I picked up some and it plunged further!

When this stock rises again with the real drilling results, I would have to thank the seller. I wonder whether BHP is interested in GMM....

CVX

http://www.theaustralian.com.au/business/mining-energy/liberia-the-new-africa-gold-play/story-e6frg9ex-1225941203839

This is a stock that I just bought recently. BSR was my worst performing West African stock but CVX has taken over that role. With price of gold falling recently, I am not expecting anything spectacular with these two stocks. However, that also means this is probably a good time to buy. If there is good news, then the price will jump but with bad news, the plunge could be massive. Why would I want to invest in companies within the West African greenstone belt?

JMS

In 2006, it leapt from 24c to 35.5 within 15 days. If share price rises for no good reason, I sometimes sell and then buy them back when the price has settled DOWN.

I did buy them back but it went down and down and down and down after that. And during the GFC, if you want to give away JMS, no one would want it. Yet, it has decent assets.

What is exciting about JMS is Aussies are no longer the master. There is this guy who used to run Billiton in South Africa who virtually did a reverse takeover of BHP. He became the boss of BHP Billiton when it became a single entity. However, he upset the chairman of BHP and got shafted within a year.

He is now using JMS as a portal of entry into Australian mining. And look how JMS has resurrected since. I am now on >20% paper profit and looking forward to more. But this guy is only looking after his own company, so if anyone is investing in JMS, you have to know when to jump out.

The truth is I am still at a loss with JMS because I also bought its options which vaporised. So I am only only catching up. Life can be cruel!

SIH and BSR

How do you value a gold miner? One went up and the other went down.

I topped up SIH at 17c on 4th Oct 2010 to see it rise to 25c today. But I also note that BSR is my poorest performing African gold miner so I topped up last week at 21.5c to see fall further today to 20c. So if I have spare cash, where would I put it in?

Both had been announcing good reports.

EKMO has been falling too in spite of decent news recently. Today, at an earlier bid price of 31.5c, I collected more stock... to see fall to 28.

Like many of my stocks, I will continue to keep them and hope to see a revival. Of course, both SIH and EKMO have risen a lot recently. So with EKMO, it could be just a correctly. I hope!

CDU

I cannot figure out its drilling results. In the past, the results are spectacular, yet the share price movements rarely moved in synchrony. Something tells the big institutions not to invest in it. When the JORC compliant resource was finally announced based of drilling results, the quantity was way below expectation so there was a crunch.

On Friday, with over 60m of high grade copper, the share price only went up by about 10%. Normally it would have been a bigger leap. If more base metals are found in this area, then I would think about investing more.

I sometimes wonder whether WM deliberately painted a lousy picture to stop big companies moving into its registry, and it also gave his cronies an opportunity to top up. I topped up a small parcel at $2.40+. That small parcel has given me nearly $1000 profit though :-) Sometimes it pays to be brave and stupid! But on Monday, it will fall...

China sneezed

The Chinese stock market has not recovered to its peak. But just a little worry about inflation has sent stock markets around the world down. Even stable gold is down. And oil too. Three contracts for commodities have fallen too. AUD has come down a little.

That means on Monday, it would not be a 20 points down per SPI. It will be a 60 point fall.

However, there will data coming out of the USA next week and that will tell us whether there is real recovery there. Share market performance is tied to the USA but real economy is tied up to... China.

Indonesian gold

Most Aussies are very wary of Indonesia, our big neighbour to the north, nearly 240 million people and the nation with the largest Muslim population. It is a made up of many islands and corrupted politicians and crazy religious fanatics. The military has only been tamed recently.

Yet because of its volcanic history, it is full of minerals. Is it high risk? It is certainly poor and susceptible to Muslim fundamentalism. It has been rewarding for me to invest in it. There is ROL (up 90%), HGO (up 22%), SIH (up 340%) and just bought last week ARX (up 17%). Personally, I think HGO is the most exciting when drilling is done in Irian Jaya. ROL has been churning up nice surprising. People were dumping ARX after the first day rise, following the discovery of a new gold zone. Always be on the lookout for mad lemmings. I was one of the lemmings on that day of rapid rise but I became a chicken when the rise was too high and too fast. The next day, when share price fell, I moved in.

Small Caps

If you read the article on small caps in Eureka Report, you will note that it has gone up by 3x the All Ords.

I have hardly bought any blue chips in the last 3 months and neither have they been raising capital via entitlements or SPP. Some new shares raised by the small caps have been phenomenal. RIA at 30c, now over 60c. MMR at 50c, now 80c. And then there are the West African miners, GRY and SBL. I wonder how long this good time will last.

Luckily my surgeons don't have to worry about me retiring early. I love the company of my nurses and it is still mentally challenging and more rewarding to earn by physically working. I will give up when I can no longer keep up with the stresses of being responsible for patients.

MMR

It must be desperate for capital. I applied for more than what I was entitled to and got the lot. The premium was not significant so I don't think the entitlement/new shares were popular but on Friday, the issue price of 50c has gone to 80c. Some crazy nuts are paying for hype. I have used up so much cash for SPPs, new shares and entitlements that I have to liquidate some MMR shares.

There are a few more 'wise guys' who are predicting an imminent collapse of commodities but they can't advise when to get out. If you cry wolf frequently enough, eventually it will come true. Not that long ago, the gurus at Eureka Report were suggesting that you get out of shares because the USA economy is going to crash and the Chinese property bubble is going burst. Well, they didn't even acknowledge how wrong they were!

I have no means of predicting. But I don't think governments or investors would like another GFC. However, it would be nice to re-establish my cash base. It is so hard to predict a few months ago that so many of my new purchases would go over 20% in under 6 months. In fact, a lot went over 50%, some by a few folds. If I had known, I would have gone to my broker at Goldman Sachs where I have a huge line of credit available for margin lending. Ah... Hindsight! I prefer slow and steady.... and expecting a major correction.

Another crazy day

Why has SIH gone up by 2.5c? I don't know but it has been doing seminars to raise its profile in Sydney and Hong Kong.

CDU went up because like in the past, while it reports great grades, I worry that the final resource will be below expectation. I was doing a little trading the last time when it was crumbling; the final top up was for $2.41.

Losses were plentiful but overall, I gained 1% on one portfolio and fell 0.5% on the other. So, there was plenty of alpha for me today.

GMM fell today. I picked some up. I think it was oversold for the wrong reason. And I also bought a small parcel of BSR. If there is economic turmoil, gold will remain high.

Crazy day at the market

This is not a day I expected my portfolio to behave crazily. No, I am not complaining but I never like it when stocks rise (or fall) massively without good reasoning.

EKM made a good announcement but EKMO fell more than 20%. Maybe the gamblers are expecting solid gold from the drilling.

My stocks went up by 2% against the market 0.65%. There are too many to comment on so I won't. But BSR went down! This is THE West African miner in my portfolio to top up at the moment. There are too many impending SPPs so I am going to run out of cash.

Someone, not any of my readers, has been buying up AZX. It has gone up a lot since my comment about how cheap it is. No one listened? I know one did but missed out at a lower price.

Uranium

The price of uranium has been creeping up slowly but this week it has quicken. Time to play uranium stocks again. By 2013, you can expect it to be much higher because the Russian contract would have expired. Imagine, American nuclear power generators have been energized by Russian nuclear warheads! The Russians were conned...

EKMO

No, I am not brilliant. This one is mostly luck. But there is a basis for the 'luck'. When I bought the options, I knew about the 4th gold belt in WA being discovered by EKM; courtesy of my favourite summarist - Our Man in Oz at www.minesite.com

See my note on 29/09/2010 plus
http://www.minesite.com/nc/minews/singlenews/article/eleckra-is-starting-to-unlock-an-entirely-new-gold-belt-stretching-north-from-anglos-massive-tropi/1.html

What I didn't expect is how much and how fast the share price is flying in the last 6 weeks since I bought. I paid 5.8c and just today, the rise is 7c, currently worth 40c per option.

Very interesting, when you look at the latest EKM presentation in the UK, you will notice that AZX is still featured as cheaper than EKM! My AZXOA has not risen as much but why complain about a 45% rise within 6 weeks.

http://imagesignal.comsec.com.au/asxdata/20101108/pdf/01118208.pdf

AVB

Go and read in Hotcopper the comparison between AVB and SFR. I don't know if this link will work.

http://www.hotcopper.com.au/post_threadview.asp?fid=1&tid=1301970&msgno=5931868#5931868

I hold AVB (549% profit) and AVBOB (57% profit). AVB is my star performer to date for the speed of its rise, even though the share price has retreated a lot.

BSR

If you want a West African stock and you felt left out or 'missed the boat', this is the one in my unqualified opinion. I hold more than 5 West African stocks and this has a gold processing plant, still underexplored, based in Senegal with the President's blessing and is actually producing gold for the first time last week. And price of gold has been up and up.

Mongolian stocks

Ad nauseum, this is the new El Dorado.

My HUN has gone up by nearly 20%, AKM up by 130%, VOR by nearly 100% before a trading halt due to "significant transaction", and GMM is stagnant. Someone did buy HUN and I am glad for him.

How many potash miners do I know that has not gone up in value in the last month? One. GMM. Say no more. But I don't analyse every potash miner.

Performance

By the law of average, most funds will rise clustered around the mean. I have my losses too but judging from my recent performance, I must be very lucky or.... very lucky. I also think doing basic research pays.

After GFC, I often wonder whether there is any point in researching. When market collapses, it does not matter what you own; everything goes down. But I now know that if you own good stocks, these recover very smartly, for e.g. GIR. And if the price of gold has not fallen, gold stocks will also recover very quickly.

Those stocks I topped up, participate in SPP/entitlement or bought new recently, have been doing so well that I am actually very uncomfortable with my performance. Too good to be true. AOH has been a loss but I topped up and that parcel has gone up >50% in less than a month. ZGM has fallen first and now over 30% in just over a month. AMX, GRY, KAR, RIA and a few more have performed very well after SPP/entitlements. I bought some other options, like EKMO, PIRO, AZXOA and it has been wow!

Today, the market fell by 0.5% thereabout or 30 over points. My smaller portfolio is up the equivalent of 12 points and the bigger portfolio is up 30 points. Now that is a good day on the market for me!

For those who want to know what are my miserable stocks are (but I am not pessimistic about them), SER, RFE, SGY, SLR, YTC, NDO, MDA, CMY and a few others, have fallen but I would prefer to top them up rather than jettison them.

MEO

Bought for the first time after GFC at 59c. My brother said it is a good buy. It is actually a good buy but the market cannot comprehend what it is really worth. And with no concrete result when looking for a JV partner and a legal stoush with other partner, the share price drifting down and down. When it hit 33c, I topped up because the actual value of the company will only materialize when the gas is exported. Patience is a financial virtue. So today, at 55c, I am onto nearly 25% profit.... with more to come.

ALY

I bought ALY at the end of Sept 2010.

Why did I buy? It had just reported good grade of gold... and more importantly, it is next to SFR Degrussa deposit. It is one of few nearologies around SFR that has not gone up a lot in share price.

Why has the share price not gone up? Dumb or ignorant investors, I think. I don't know why otherwise. So I bought the shares.

Today after 6 weeks, it is up 60%. This is much higher than metal index rise on the ASX. Am I smart? No, I think the rest of the market is du.... or ignorant. Is it too late to buy into ALY? Inshallah! It has not even started digging much. The copper is nothing much to brag about but the gold grade has been good, not spectacular. I won't be selling until more drilling results are released.

Our Man in Oz

http://www.minesite.com/nc/minews/singlenews/article/that-was-the-week-that-was-in-australia-3b33d94f97/1.html

This guy gives the best summary because he explains why succinctly. For Aussies, he also gives you sports news. Yes, bad news for cricket lovers! But it is good news for me. However, the reality is hidden by the Feds printing money. Just printing USD will not help in the long run. Americans need to sell more stuff, be more productive... or work harder. Try telling the Greeks and French that.

Now I 'know' why my portfolios are doing so well. So well, that I am expecting too much. Gold is up, uranium is up, copper is up.... BHP and Rio are up a lot too but not just because of metal prices. Investors like companies that return profits to shareholders in either dividends or share buybacks. The smaller miners are benefiting because after BHP failed to take a big bite, the smaller bites might be more pragmatic. Why invest in blue chips at this moment if you can handle a bit more risk? The return is much higher.

Just admire my EKM! I can't buy more because it keeps going higher and higher. Complain yet no complaint.

By the way, for those who missed out on West Africa... have a look at BSR. It has poured its first gold and the market has ignored that. Its enterprise value per oz of gold is low and the management is so lazy at getting more exploration done.

PRU

For those who bought PRU, this article will give you a lot of comfort and satisfaction.

http://www.minesite.com/nc/minews/singlenews/article/perseus-mining-heads-towards-production-of-400000-ounces-of-gold-per-year-in-west-africa/1.html

Market Frenzy

I never find it comfortable when market keeps going up and up and up. The crash will come but you don't know when. While my small caps have reasons to go up, I find it hard to believe how fast and how high they have gone up. I hardly buy any blue chips. Should I take profit or should I just sit tight? Based on past experience, I usually do nothing.... Inshallah!

ARX

I find Indonesia fascinating. And being able to speak the language helps.

Yesterday, before the market opened, I was chasing ARX (upping my buy price and then upping again and then upping again and as the market was about to opened, I canceled by bid because people have gone crazy. Prior to 1000h, it had announced a new gold area based on trenching results. This is not a reliable way to assess JORC resource. However, it tells you what is potential available.

Today, I bought at 2.9c, below what I would have paid yesterday. If I want to participate in any Share Purchase Plan, I will now have to sell stocks.

Today is fantastic for me. One portfolio went up just under the ASX average (1.2%) but the other went up by 2.4%. You can say I am happy with my alpha. I have already made more than half my annual pay as an anaesthetist within the last 6 weeks from the market. The market has made money for everyone but it is extremely important to have alpha. It is not worth my time, spent on researching, to be "average". Someone bought GTE and it is now >50% after only a short time.

LRF

Great management and grossly undervalued (ie selling at a huge discount to NTA). Did anyone buy this fund manager? Presumably not. You have my sympathy.

Between 2008 to today, I have paid 45c to 67c to top up my LRF. Today, it is 87c. But I am still at a loss because I bought pre-GFC. However, my average buy price has dropped because I topped up. I have no doubt, bar a collapse in world market for whatever reason, that in the near future, I will be in the green zone.

The stocks this company invests in, have mostly been of good quality.

GIR

One of my favourite companies today announced good Fe intercept... yet the share price went down. Beyond me. Perhaps the Silicon content is too high? I really don't know. I have now accumulate a large chunk of GIR in portfolio. I am glad to say, not because I bought a lot. I didn't buy enough and they have risen in value by many folds.

Any of my readers who has not bought any GIR should not be reading my notes... wasting your time, mate! This is really a superb company and you should have bought it a long, long time ago. For some, I told them when we were all using stone tools. I never stop harping on it because it is that bloody good.

ARX

http://imagesignal.comsec.com.au/asxdata/20101026/pdf/01112345.pdf

This is okay but promising

But this morning, it is this

http://www.asx.com.au/asxpdf/20101104/pdf/31tnwbsy6x9n32.pdf'

Note that it is only "potential" but this is where I make a calculated risk and move in. It might come to nothing much but at under 3c a share, I am prepared for "nothing". The market is not opened yet. I expect the price to go higher.

Indonesia is a most interesting country... and it is only next door.

DRA

You don't need to wait for these results to expect good grades.

http://www.asx.com.au/asxpdf/20101104/pdf/31tnwsm2pfgb08.pdf

Yet, after announcing fantastic historical grades, the share price went up and then down. Today, I expect it to go up. I love DRA because I have so many opportunities to top up after good announcements; nobody wants it except... me! This company is performing better than so many other gold mines but the share price has been moving like a tortoise, downhill uphill downhill uphill... then uphill, uphill, downhill, uphill, uphill, uphill.... I catch the tortoise when it is going downhill. So far, just under 50% profit but it should really be much higher. Plus, it is a PRODUCER of gold, not just explorer.

EKMO

Anyone care to read?

http://www.minesite.com/nc/minews/singlenews/article/eleckra-strikes-it-rich-at-yamarna-in-western-australia-and-londons-investors-are-likely-to-be-the/1.html

Looks like there will be more good news from the drilling ("visible gold" seen on inspection from 35m to over 100m from one hole). Because I bought the options, my EKMO has gone up by 4.5x in under 2 months. I have not been able to top up because it kept rising and rising!

Trading Halt

It is annoying. Especially when so little detail is released.

Why is VOR in a trading halt? It is because of a 'significant transaction'. Why a halt if it is insignificant. And everything in ASX is a 'transaction'. So why can't the company be a little more specific?

If it is placement, then it is bad news. I don't wish for a take over because I am a long term investor in good companies. I wasn't happy about AND being taken over by a Canadian company. But the board recommends selling to the bidder so I didn't have a choice. I sold it off on the open market.

FNT

Never heard of FNT? It has a tenement across the Kokoda Trail. So people were up in arms when it was going to start a mine in PNG which encroaches on the famous trail. The locals were for the mine but Aussies? For sentimental value and the fact that they are not paying for the mine, people and the press were painting FNT action as treachery. The parties came to a solution eventually.

In August, I topped up because the grades are so good but the share price has come down from 7.4c when I first bought in April 2010. Today I have nearly %15 paper profit. I can be easily contented... especially when it has been a loss for a while. But eventually, people will realise that FNT is grossly undervalued for the gold that is already found in its tenements. Patience can be an virtue in the investment world.

AZX

http://www.asx.com.au/asxpdf/20101102/pdf/31tmqdv53fw56f.pdf

Just over a month ago, I bought the options because the Enterprise Value per oz of gold was so low; currently only $31.03. One oz of gold is >USD$1350. And AZX gold is 65km from Kalgoorlie and the deposit is "shallow". Go figure! I discovered this company purely by chance when I was reading about EKM. EKM has gone much higher while AZX has returned ONLY 27% since 30/9/2010.

Is anyone reading my note?

The new "West Africa" - Mongolia

In fact, Mongolia is doing better than my West African miners. AKM has more than doubled and VOR is nearly doubled. But HUN is only slightly up and GMM is slightly down. What does this mean? HUN has gone up 5x since it was floated in the last 12 months. But neither HUN and GMM are conspicuous on the ASX. Watch especially GMM as it is mining potash. If BHP offers a higher bidding price for Potash Corp; all the potash miners will rise in value too. So why not go for a current laggard? And in Mongolia!

When I first bought my 4 Mongolian stocks, AKM was the laggard.... That is history at the moment. You have to hope a big investor takes an interest and that happened to AKM. Most investors are blind until one person, with a deep pocket, sees.

The Russians are coming!

I bought BKY a long time ago when uranium was the hottest thing in the market. So I have been nurturing a huge loss. But I never sold this one because it has a very promising mine in Spain. And today, it announced that a Russian company is interested in taking it over. So when the exchange is done, I will be in the green but not profitable. Still, it is better than a huge loss until recently. It is only a small parcel... but Australia is really selling itself cheaply on the world market.

But then Canadians will probably grumble more than me. BHP is buying Potash Corp for AUD$42 billion! The politicians are leading the fight on behalf of the Saskatchewan company. Yet, in truth, BHP is actually owned by Brits and Yanks... and so is Potash Corp!

SIH

If you spent $2000 and your share price went up by 5 times, your absolute gain is $8000. But if you keep topping it up until you have spent a lot more, then even if the share price has 'only' gone up by 2-4 times, your absolute gain could be much more.

That is my investment in SIH. I bought when it was known as ORP. My biggest chunk was during an unpopular share purchase plan, worth only 2.5c in the middle of 2009. I bought the maximum because all announcements have been good but the market and its own shareholders mostly ignored it. From mid 2007 till today, it has not produced any gold but my paper gain is nearly $50,000. My most recent buys were at 16c and 17c within the last two months, each after good announcement and again people are not interested in it. I am very glad about market indifference... until someone writes about it or the company presented itself at a seminar (in Hong Kong recently).

http://www.hotcopper.com.au/announcementFiles/2010%5CSIH%5Cc8472a99-b844-4b50-8344-e7605ce06bb9-SIH512694.pdf

Just look at how much cheaper SIH is compared to its peers along the Sumatran Fault line where gold has been found.