Diamond Stocks
The Story Behind Canadian Mining Speculation
I just finished reading a tiny little 100 page book by the title of "The Story Behind Canadian Mining Speculation". It was written about 50 years ago by T.H. Mitchell and it should be a must read for any current mining speculator. If you can get your hands on it that is. Try searching for it at your university library because that is where I found this copy. Anyways, here are some great bits of information that I got from the book:
It should be clearly understood by the Canadian investor that the majority of the "penny" stock companies are worthless and always will be worthless. This has been proven time and time again. Yet their stocks have a definite value as a speculative trading medium; in other words, the stocks themselves are not worthless so long as somebody is willing to buy them. Thus, one has to be pessimistic about the possibilities of the companies, yet optimistic about the profit opportunities which their stocks present. And these are the sentiments which guide the professional traders.
Mining Companies At Feasibility Stage
I found an old piece of paper on my desk today that had a list of several mining companies at the feasibility stage. In other words, they are looking at developing their exploration property into a mine. I think I compiled it a couple months ago so things may or may not have changed.
I have not done any research on any of them except for the fact that they are at the feasibility stage:
Gold
GBG.TO http://www.greatbasingold.com/gbg/Home.asp
MGD.V http://www.mandorin.ca/
AXM.V http://www.axmininc.com/DesktopDefault.aspx
VVI.V http://www.valenciaventures.com/
MGM.V http://www.morgainminerals.com/s/Home.asp
BAJ.V http://www.bajamining.com/
Introducing LatestDiamonds.com!
I would like to thank all you people here reading my opinions. I really appreciate it.
I would also like to thank you for making my latest... sites quite successful as well.
There are now 4...no 5 latest... sites:
and...
Yes, since I think that the diamond sector will become more and more popular over the coming year(s), it was a no-brainer for me.
There are currently 41 diamond stocks that are being tracked. This is about 1/3 of how many Uranium stocks are being tracking and about 1/2 of how many silver stocks exist right now.
In my opinion, that means that there is much room for growth in the sector.
Diamonds North Investor Relations Notes
In line with my theory of an upcoming Diamond bull market, I began my company research by phoning a company called Diamonds North (DDN.V). Why did I decide to call this company first?
Well the one thing that truly makes this company unique among all diamond companies is that it is spinning off its vast uranium assets into a new company to current shareholders called Uranium North. Here is a brief outline of their intentions:
Between 2002 and 2005, Diamonds North aggressively acquired 27 million acres of land prospective for diamonds in Northern Canada. After review of exploration data and historical data, the Company determined approximately three million acres of this land was highly prospective for uranium. By proposing to transfer the uranium assets into a new company, management strongly believes shareholders can capture additional value without dilution to Diamonds North, and without diverting Diamonds North's determination of discovering Canada's next diamond mine.
Diamond Stocks: On The Verge Of A Bull Market?
I always have my eyes and ears out open trying to find the next big company or trend. I think I have picked up what will be a huge bull market: Diamonds!
I am no Diamond expert but I did a little research and it turns out that Diamond Mining is the most profitable of any type of mining. Diamond mines, when found, are more valuable than even uranium mines. And when compared to uranium, diamonds are a larger industry.
In Canada, there are only about 40 listed diamond companies. This is not a huge number like uranium or gold but it still gives an investor a decent selection to choose.
Of course, every one of these companies wants to convince you that they are on the verge of finding and developing the next diamond mine. Yes, I am quite sure that 2 or 3 or those companies will succeed but most will fail and eventually wither away.
Diamonds are very hard to find but when they are found, it is a jackpot. Ekati and Diavik, the 2 largest mines in Canada right now have a value of over $11 Billion! Even the smaller Tahera mine that recently went into production has a value of close to $500 million. Yet most of our little diamond exploration companies have values mostly under $50 and $100 million. That means that upon a large discovery, there is certainly a lot of room to profit.
