Sunday, January 25, 2009

Junior Miners CDNX Surreal Experience of the Desert before the Tropical Rain. CDNX, TNR.v, CZX.v, RMK.v, SAX.to, SBB.v, MGN, RVM.to, CNU.v, SST.v

If we would like to talk Historical, go to Obama in Washington or to Canadian Venture Exchange in Vancouver. Both events are ground breaking, promising and unexpected just a few years ago. They share another very important quality - they have happen and the world will never be the same.
This is a weekly chart of CDNX. This is the real end of the small investment world feeding Majors all over the world with new resources. Even brave are shaken, fortunes has gone and for some will never be back. All those guys which were without trunks are sitting naked after the tide has gone. To make things worse and BULL more solid - even those in diving gear were trading below cash value just three weeks ago. A lot will go bankrupt, the best will survive and prosper. Market will never give back where it has taken. Financials will be cursed for years of low returns, write downs and dilution. Those in Junior Miners and Exploration with strong hands, trustworthy management and properties of merit will be enjoying the ride on Rush to secure production assets. No one for years to come in the Major companies will put any significant money into exploration after recent Bust. We will know for sure that it was temporary Irrational Delusion and Value Dislocation in five years time short term, until then memory will be very fresh. Return from exploration could come in years time and you are never sure. When your life as an executive is measured from Q to Q performance you will pay the high buck first for producing assets, which will add to your bottom line in the rising market tomorrow, and then for deposits which could be developed when producing ones will be gone from the markets. Nobody will have the luxury of time before the next up leg in Gold, Silver and Commodities will go bust. All Black Rocks of the world will be chasing diminishing after recent shake out Treasury Maps to feed their M&A and Private Equity appetite. No deals - no money. They will be competing with Chinese State Eterprices, Barricks ABX and Newmonts NEM who will struggle to secure production profile. Here where the home work will separate new found wealth and bag holders in the years to come. Learn, study and act - time is coming on this side of the Play. Watch for US Dollar confirmation in a break down, Gold above 900USD and Juniors moving up 30-40% weekly from recent depressed lows. Winners are still there - hiding between the losers.

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