How to read financial reports

http://www.minesite.com/nc/minews/singlenews/article/a-merry-christmas-allied-to-investment-ideas-for-2011/1.html

When I read a tipster's recommendation, you want to know why a particular stock is chosen. But this suggestion is short term; it is easy to miss the boat. If the tipster is famous with a big following, the tip itself will move the share price.

What I like best is articles like the above. It allows you to plan and select a stock yourself. It deliberately didn't want to discuss gold because it is so obvious. But look at the future trend for silver, an undervalued metal. And look at uranium, with Russian (conned) contract expiring in 2013 and so many new nuclear plants planned, there will be shortage of uranium. Someone will take over PDN; Chinese I think.

A lot of mining plants take a long time to develop and they are very expensive to built and very difficult to plan due to political, geographical and infrastructure considerations.

This year, I bought CGG because of its good looking female CEO (she must be bloody good) working in Saudi Arabia, its expanding copper/gold mine there and I have made profit out of it in the past so when the share price fell with all the good news, I bought it back. Now it has been taken over by EQN and this will be taken over by another bigger company because it is cheaper to take over a producer than become a producer yourself. Read the article and see if my interpretation is right!

And again, you have my sympathy for your apathy if you didn't buy any GIR if you had spent time reading my emails and Club Mulgoa postings. I have read so many good articles about GIR in the past. So wonderful that I will buy anything when its current board of directors (except one) set up a new company after they are out of their GIR duties.