All the best with your purchases but you have to treat these companies as 2-3yr propositions. Of course if one drills into a major orebody, then you would naturally look at the risk/reward and make a decision then.
The ADE news on the thickness and shale gas potential was fantastic and I think it took the JV partners by surprise. The lure of an almost immediate 50% profit for placement and rights issue takers will keep the price in check for now, however you could not have asked for a better start to the program.
Over my 12 year career the most successful clients held portfolios of the quality speculative stocks such as the ones I covered in the original post.
I also learnt that it is often "peronality before profit", where those with the right character traits were able to buy low, and importantly buy lots of these quality exploration companies that can deliver on the project acquisition front even if they have no luck with the drill bit.
You also have to be prepared for portfolios such as these to have a range of -40% to +200%. You could still be right and be down heavily on paper in the early stages, however I have not seen any other method in the smaller stocks that works over the medium to longer-term.
I strongly recommended to my clients that they read "Devil Take The Hindmost". The footnotes can be annoying but anyone serious about a career in speculation should read this. Here is the link on where to buy it
