Time to let SA come down a little but while you wait, buy some JAG. It's cheap and it's on fire!! Jump on now instead of waiting for a miracle (or a possible collapse). We've all made some nice money on SA. I love the stock, but until they get bought out, there will be no $50 shares. At least consider lightening your positions and purchasing some JAG. It's the new hot stock in the sector. Just an opinion though.
Just to inform you that JAG is a favorite mid cap growth stock of many Brokers.
Although it is more expensive if we look at ounces in the ground compared with SA, the difference is that Ounces at JAG are economical and the company is a producer!
Normally ounces at producing companies are valued 4-5 times higher!
With POG heading 1000$ and Jag going from production of 100.000 to 300.000 ounces by 2008, this is a clear winner and could increase 300-500%, twice that of large cap producers.
If SA its ounces prove to be economical, and company is taken out at later stage at maybe 100 to 120$, but return will be the same at JAG, with far higher risk.
Let's say someone with a lot of Seabridge decided to sell 1000 shares, just to rebalance the portfolio a bit, and was considering jag as a place to park the $29,000 proceeds from the SA sale.
At today's price, they could get over 3500 shares of jag. However, one must consider the entry position very carefully. It is almost noon and jag has traded only 15,000 shares.
What if you set a 10% stop loss, mental stop loss that is, and the price drops to your stop loss area. You might have trouble getting out of your position. And if you are a high roller, and you want to invest $100,000 or $200,000 in jag, you would need to buy 13,000 or 26,000 shares. The latter figure is almost half the daily trading volume!!!
With jag, I would say it is imperative to keep your share count small, and to very carefully pick your entry point, using both TA and fundamentals. That being said, I'm finding some pretty good stuff with my dd. IMHO, pipe
I really like copper plays right now personally. FCX will be at $130 by Nov 1st I bet. I'm just hoping JAG gets some more exposure. The volume is pretty insane. They are going to start production on a new project in the 2nd quarter of 2008 from what I read. I think they should be a good growth play and as already been mentioned, a good takeover possibility.
I had heard of it right around the time I saw your post. That's the primary factor that made me look at it. Good call! I think you're definately onto something. Are you planning on buying more?
I did some dd at the Jaguar website. Here are my very preliminary findings, so please let me know if there are corrections.
55 million outstanding shares, plus 7 million warrants, for a fully diluted share structure of 62 million.
2.9 million indicated gold ounces, and another 850,000 inferred gold ounces, for a total of 3.75 million gold ounces.
Multiply 62 million shares by last price of $7.75/share, and you get a market cap of $480 million. Divide 480 million by 3.75 million ounces, and you appear to be paying $128/oz. Isn't that a bit steep? IMHO, pipe