Checklist to Keep it Simple

Some simple points that will make it hard to make stock picking mistakes in the current market…

Main criteria

• No pre-discovery plays unless remarkably high quality and/or multiple targets with good backing
• Third party validation by major miners or smart money
• High insider ownership
• CHEAP

Bonus

• Good share structure

Thoughts

There is always some extremely high-risk, pre-discovery juniors that could theoretically go up a lot. BUT, the odds of them doing so are way lower than most people understand, the actual immediate reward is typically way too low to compensate for the risk, and one risks missing out on the inevitable bull that will come from just a swing in sentiment.

I see a lot of lists of people’s junior holdings on twitter and they tend to be almost entirely made up of the riskiest and least de-risked juniors. Few of the companies will have third part validation from major investors or major mining companies.

I recently took a punt (~1% position) in Dynasty Gold for example. I had seen their good looking drill results but it was not until I saw Rob McEwen aka “Mr Red Lake” himself join the PP that I decided to join in. Finding a $15 M MCAP junior with such good hits is rare and is worth paying attention to. However, the same junior with a vote of confidence from Rob McEwen, completely changes my subjective Risk/Reward estimation as I am an amateur geologist at best.