04/15/2010

I am interested to hear your opinion on Ecu Silver Mining Inc. OTC:ECUXF

Honestly, I don’t know the company. Sorry.


The MSCI US REIT Index (RMZ) continues to go up. (Although in the last 48 hrs it is looking a bit topy.)
Yet residential and commercial properties continue to weaken.
What am I missing?
Will this sector be ‘saved’ by money printing/inflation?
Or do you think this sector is potentially a good short?
If so what would be your catalyst to go short? Increasing treasury yields? Technical weakness in above index?

I currently have on intention to short REITs. I rarely short anything. I find it’s very difficult–especially when the Fed keeps printing money. I don’t know why the sector continues to go up. I think it’s just a case of money printing that lifts all boats.


It is pretty clear business is turning in the big picture sense for Aeroquest and Energold. Looking a bit at the less important short term, what did you think of the earnings report and call from Energold today? Was there anything in it to make you less or more bullish? Thanks!

Business does seem to be turning. Though it’s going a bit slower than I expected. There’s nothing in the most recent earnings report that suggested that things are not turning. However, I was a bit disappointed with the quarterly margins. Those should improve going forward–if the business does get better. I think that calendar Q2 is really the quarter when we can see how things ought to look going forward as the winter months are seasonally weaker anyway.


of stocks you have mentioned here and in fleck’s column which ones do you look most favorably on as far as adding to positions? thanks.

When dealing with smaller companies, you really need to be diversified. I think Fleck said it best when he said that some of these won’t work (but he doesn’t know which ones). Generally, if I write about something, the price I’m mentioning it at is a price that I’ve recently paid for shares. Whether or not that’s intelligent is up to you to decide.


Hi Kuppy,
I am glad that Fleck forwarded your website to his readers – thank you for your research and insights on small companies.
I had a question about Altius Minerals. 2 analysts/investors that I consider thoughtful – Rick Rule and Brent Cook – both recommend this company highly. have you researched this company and would you be as enthusiastic about this company at this price, at a lower price or not at all? Thanks for your opinion and I look forward to reading more of your commentary!

I have heard of the company, but I really know nothing about it. Rick Rule is an intelligent investor, but you need to do your own work. As far as junior mining companies go, if I have a comment about one in 50, i’d be surprised. I just really don’t know about these and haven’t followed them closely for a few years now. The ones I followed back in 2004-2007, mostly no longer exist. That should tell you something about junior mining…


Comrade Kuppy-

Are you concerned that the stock market on many metrics is currently over-valued and over-bought with rising treasury bond yield pressures as well as a year long rally and so if there is some serious selling that gold and silver miners could take a good percentage loss along with the rest? I am making the assumption that money printing will ultimately reassert values but from a trading standpoint would you take money off the table now from the enormous gains in the miners over the past 12-15 months?

The market can really do anything. Just because the market is overbought, doesn’t mean that it has to drop. I think that mining companies, by many metrics are actually cheap–which should protect them somewhat. If the market drops, miners could drop with it, or they could go up. There’s no way to know. I have always believed that it is impossible to predict the market, so I simply buy good companies and ignore the swings. Besides, if you think something will go up 500%, why bother trying to capture each 10% move along the way?

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