Sunday, February 08, 2009

Juniors CDNX time is to bring sweet days back. TNR.v, CZX.v, SST.v, OK.v, RMK.v, SBB.v, MGN, FVI.v, CNU.v,, BBT.v,, ASM.v.

In Canadian Venture CDNX life is coming back with still scared money inflow. Squeeze of volatility is resolving in an upside move. Markets bear rally, decisive move down in US Dollar, move up in Gold, Silver, Oil and other commodities on reflation hope will bring spectacular gains to survived Juniors.
Crises has separated Survives and Failed ones, consolidation is under way and first deals are announced on acquisition front. Chinese are shopping around and their appetite for even out of fashion Zinc assets is very encouraging. Copper has rallied on the news from China and lower level of PMI contraction in January compare to December. Dry Bulk Index is coming back from levels of total devastation. Trade disrupted by lack of credit is coming back, now the question will be how much is it affected by lack of demand?
Fortunate are those who preserved their dry powder and was buying at November - December lows, first time buyers are really blessed with these buying opportunities. What to do those who are sitting on paper losses? Time will come to make a difficult decisions: market will not come back to the old highs in a straight line. Time has gone for over the roof optimistic valuations for low grade properties in the middle of nowhere and may never come back. Some companies are weathering the storm better then the others. We are all blessed in a sense that we can see how Juniors are passing their graduation exams; if they can survive recent carnage they will build new value in a better market. You will have to find winners among survivors.
Time will come to sell and allocate capital to your winners, the key word they are yours - you have to find them. Not everything is so miserable and hopeless here - you now know where to search for, what to look for and there is not so many of them any more worth a look. Look who can not only survive, but to deliver results, get financing and obtain new properties.
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