VWIG

edminnema
+1839-117

I have read your "critical eye" posts and responses. Good write ups. And if I may, just a few comments. In respect of what to look in a company, I feel another very important factor is money. Does the company have money, better yet, does the company have the access to money, can they get the juice? In todays economic and financial crisis, money is very difficult to come by. The big boys are sitting on the wayside, trying to decide an entry point, more so then an exit. So when I look at companies, its management, properties, and cash, not one being of particular more importance. BUT, some juniors might not have all three, they may have a superb property, and that may be all they have. There management may be mediocre, they may be taped out on funds, but does their excellent property nullify them for an investment. The hardest part is, RISK vs.REWARD, you may have a greater risk, but how high is the reward. I prefer companies that have properties in North America, with preference to Ontario, B.C., and particularily Nevada. These areas are considered the most miner friendly. I personally do not like properties in foreign companies, but that is my preference. The exchanges in Canada basically accept only assays from Canadian accredited labs. Business at American labs have dropped dramatically, and some I know of are considering move their business to Canada. I also would like to touch on the insider issue just a tad. When one sees insiders with large holdings, at times it is seed capital. Albeit seed capital is needed to start a company, in the past the seed capital could be raised at $.001. The exchanges have no changed the seed capital and founder shares to I believe $.02 for cnq listings, and $.05 for tsxv listings. In respect to options, I look at those as stock that insiders dont has as of yet. They are set at higher prices as incentive, so if the company performs, the management and employees et al benefit, but they have to pay with their hard earned cash to get those shares. The CARDINAL RULE in regards to public companies is dont use your own money, use the publics. Not very often do you see management plunking down their own cash for large blocks of shares. You commented on the time I spend here and my contributions, and I thankyou. Like wise yourself. I do compliment IR and act as consultant for a number of companies, and am considered an insider on a few. This is what I like doing, have been in the markets for many years, with a hiatus here and there (mostly when mining was non existent for a few years). Best of luck to you and everyone in their respective investments.

edminnema
+1839-117

Re: VWIG- money & management - Edminnema/melodyfan

Hmmmmmmm, I was thinking about your statement. Management does play a huge role, but I dont believe that they are the be all and end all for a company. If you have management with a proven track record, then I can not gaurentee necessarily a successful venture. There are to many variables. Myself, I am a jack of all trades, master of nothing. I have financed companies albeit it small, in the past. I have raised funds for companies, I act as consultants for companies, so I know a lot of people. What I would like to do myself aside from typing on a keyboard, is stake some mining claims of my own, sort of a hobby, in a private corporation, and then either joint venture those properties, or I may end up camping on them, lol. I am self taught in geology, I know the markets a bit, and I know where the money is, albeit very hard to get. Now if I wanted to take the company public, would I be a success. I have many contacts, but my success would depend on what I have, and how greedy I wish to be. A lot of companies believe that they have the greatest discovery in the world, but they are to greedy to get it off the ground. Believe me, I know a few. So what I am try to convey here, property is probably number one and providing data on that property is also key. If even I show that my property has the goods, I can be a great success, unless I am a total jerk of course. To an extent it is who you are, who knows who you are, and who you know.

Melodyfan
+744-90

Re: VWIG- money & management - Edminnema

No doubt about it, management plays an incredibly huge role in the success of a deal. Vwig hit the nail on the head, if they have a proven track record, raising money is a lot easier.

edminnema
+1839-117

Re: VWIG- money & management - Edminnema

well put. In respect to options though, a lot of those who sell the shares after exercising their options are employees who are just surviving. Even management, just because of a "title", a lot of these are not wealthy by any means. I have no qualms with insiders selling small positions of shares here and there They do need to off their risk also, just as we as shareholders should do, then hopefully we ride the balance of our holdings for free.

One other aspect I look at, which may require a bit of work. I am also very interested in the charts of the companies shares, paying attention to large volumes and price hikes, trying to determine if it is because of news or a pump and dump. I also look at if there was insider selling during that particular runup. It is tough to find stocks that have not been manipulated, raped and pillaged to some degree.

Snowbird
+228-31

Re: VWIG

Great points made by both of you. When am I going to get a blog named after me? lol jk

Vwig
+452-171

Re: VWIG- money & management - Edminnema

Thanks for your comments.

I agree that the issue of money is an important one. Certainly with the current state of the markets.

I do however go by one premise. Great management build a following of money and have access to it nearly at will. If you have proven yourself in this game,. Then you never have trouble raising money.

Any team that has a long history of success wiull also find properties that will allow them to continue to succeed, and from what I have seen.........there is never a problem in finding capital.

You also mention that it is rare that company directors throw funds to buy large blocks of share in their own companies. Agreed there as well. they usually use OPM. Once again, I do tend to look for those few who actually do purchase shares on the open market and who don't simply exercise their options and sell off their shares the next day or week.

I am currently heavily invested in one play where the CEO has been purchasing loads of shares on the open market. No doubt in my mind that this is a sure sign of confidence and a question of putting your money where your mouth is.

I agree with you also that risk/reward requires us to look at geographical locations in great depth..

Although I also prefer N.A. to anywhere else, I do realize that the costs in N. A. are rising rapidly and we can both name a few companies who have put plans on the shelf for properties that would have been mined if the cost of putting together a mine wasn't so huge these days.

For that reason I allow myself a few plays outside of the most wanted areas, but with a low political risk nonetheless. This requires very in-depth dd, because you have to understand the politics and the local economies , as well as who actually makes the wheels turn and the whole process of permitting and other procedures that allow foreign companies to explore or mine in those places. Instability and short term gov'ts are always a risk because mining a resource can't be done economically over just a few years, so long period of political stability are needed.

Often that while the majority of investors won't touch certain plays because of location, these plays once they actually get everything put together and all the permits signed and contracts sometimes be stunning.

Cheers,

Vwig.

Dully
+221-17

Re: VWIG

Vwig even gets a blog named after him! Compliments to you edminnema, I love reading both of your posts and it helps me learn to view investments with more scrutiny.

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