Club Mulgoa

Friday, February 04, 2011

Proactive Investors One2One Investor Forum: "Emerging Stars in Resources"

I attended the presentation on CNY eve, missing out on a Reunion Dinner with my wife. After that, I rushed off to see "Madama Butterfly". Cilla had a sandwich on her own before joining me for the opera.

I didn't sit through all the presentation or I would be late for the opera. Of all the companies presenting, I like KGL best. But I have already made 51% profit out of it. I like any company that looks after the smaller shareholders when they raise capital. This company has a great discovery in Central Asia, with the backing of the new democratically elected government. The previous head was a corrupted tyrant and overthrown last year.

Most gold miners have a spurt in their share price when they announce they are entering an area with gold discoveries, when a near neighbour makes a good find, when they make a good find themselves... and when the feasibility study shows good profit to be made and the final spurts are when it actually start producing and producing more than anticipated. Not always true but that is usually the trend. The best is when a generous takeover occurs.

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