How to Analize Junior Exploration Companies!!! - Penny Stocks

Placer_foot · Fri, 05-18-2007, 04:20 PM

I'm a busy little bee today with more helpful info for all you out there....

Class....we're about to begin:

How To Analyze Junior Exploration Companies:

Most conventional analytical techniques cannot be applied to junior exploration companies. Most juniors lack either a property with a PROVEN economic orebody or sufficient capital to attain production should a mine be found. How then are junior companies evaluated? The following are some factors to be considered:

1) Extent of exploration activities and location of properties

2) Management's track record - Is management experienced? Have they discovered or do they operate any producing mines?

3) Financial position - Is there enough working capital to finanace exploration or will more treasury shares have to be issued ? ( this is where dilution comes into place )

4) Common shares issued - How many common shares are issued and outstanding? (o/s) If a company has few assets and a great number of common shares o/s ( I smell OTC ...actually....i smell PBLS... )

, a reverse stock split may be necessary before new equity capital can be raised.

Successful analysis of junior mining companies and their correlating share price requires SPECIALIZED knowledge (Shhh, can you keep a secret )

, patience and willingness to devote a great deal of time to security selection. Shares of junior mining companies can resist sharp price flucuations in response to favourable or unfavourable news or rumors. Nimble trading is required if profits are to be realized or losses minimized.

There you have it class.... from my brain to yours.....and FYI...click on the following link below to see a Company that fits all the above criteria EXACTLY!!!

sorry no links to other boards

upandaway · Wed, 05-23-2007, 05:46 PM

I agree and as well................... Why are Jr. Mining Co's a good investment ?

Leverage is the simple answer. It is not uncommon for junior mining companies to experience huge gains (10x or more) very quickly as news of a discovery is made known to the public.

Junior explorers are not slow-moving bureaucracies like many senior companies. This makes juniors able to make fast decisions both in the boardroom and in the field.

CashCow · Wed, 05-23-2007, 06:27 PM

hey placer foot...do you own any federal placer claims yourself? i have been thinking about a 160 acre placer gold claim in california i found....thinking about buying. do you have any experience with that?

upandaway · Wed, 05-23-2007, 08:02 PM

Hey CashCOw,

I would contact a professional Geo or Mining Engineer and get a professional opnion, you would'nt want to buy a "COW PASTURE" .... would you .... ?

I've been following Dorex Minerals Inc. a small unheard of Jr., it appears to be doing something as far as exploration is concerned, I haven't bought any stock and I'm still waiting to see if they have any real results.

Any ideas or suggestions ?

Upandaway

Fri, 05-18-2007, 04:20 PM	#1 (permalink)
Placer_foot Senior Member Join Date: Sep 2006 Posts: 138	How to Analize Junior Exploration Companies!!! I'm a busy little bee today with more helpful info for all you out there.... Class....we're about to begin: How To Analyze Junior Exploration Companies: Most conventional analytical techniques cannot be applied to junior exploration companies. Most juniors lack either a property with a PROVEN economic orebody or sufficient capital to attain production should a mine be found. How then are junior companies evaluated? The following are some factors to be considered: 1) Extent of exploration activities and location of properties 2) Management's track record - Is management experienced? Have they discovered or do they operate any producing mines? 3) Financial position - Is there enough working capital to finanace exploration or will more treasury shares have to be issued ? ( this is where dilution comes into place ) 4) Common shares issued - How many common shares are issued and outstanding? (o/s) If a company has few assets and a great number of common shares o/s ( I smell OTC ...actually....i smell PBLS... ) , a reverse stock split may be necessary before new equity capital can be raised. Successful analysis of junior mining companies and their correlating share price requires SPECIALIZED knowledge (Shhh, can you keep a secret ) , patience and willingness to devote a great deal of time to security selection. Shares of junior mining companies can resist sharp price flucuations in response to favourable or unfavourable news or rumors. Nimble trading is required if profits are to be realized or losses minimized. There you have it class.... from my brain to yours.....and FYI...click on the following link below to see a Company that fits all the above criteria EXACTLY!!! sorry no links to other boards Last edited by rider3160 : Wed, 05-23-2007 at 06:28 PM.

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Wed, 05-23-2007, 05:46 PM	#2 (permalink)
upandaway Member Join Date: May 2007 Posts: 58	I agree and as well................... Why are Jr. Mining Co's a good investment ? Leverage is the simple answer. It is not uncommon for junior mining companies to experience huge gains (10x or more) very quickly as news of a discovery is made known to the public. Junior explorers are not slow-moving bureaucracies like many senior companies. This makes juniors able to make fast decisions both in the boardroom and in the field.

Wed, 05-23-2007, 06:27 PM	#3 (permalink)
CashCow Never average down Join Date: Jul 2006 Posts: 49	hey placer foot...do you own any federal placer claims yourself? i have been thinking about a 160 acre placer gold claim in california i found....thinking about buying. do you have any experience with that?

Wed, 05-23-2007, 08:02 PM	#4 (permalink)
upandaway Member Join Date: May 2007 Posts: 58	Hey CashCOw, I would contact a professional Geo or Mining Engineer and get a professional opnion, you would'nt want to buy a "COW PASTURE" .... would you .... ? I've been following Dorex Minerals Inc. a small unheard of Jr., it appears to be doing something as far as exploration is concerned, I haven't bought any stock and I'm still waiting to see if they have any real results. Any ideas or suggestions ? Upandaway