Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

August doldrums...

I haven't felt compelled to write for a few weeks. I am interested in finding out more about additives for steel (molybdenum and tungsten for example). Large known deposits are just starting to be mined again after lengthy periods of inactivity. The risk in these companies is not geological it is in the pricing of an illiquid commodity that doesn't trade on a major exchange. Try finding a 20 year molybdenum price chart for example. However we know the steel business is robust and even if the price of steel peaks, there will be additional steel suppliers coming out of the woodwork because of the higher steel prices. The steel price may not increase but the volume of steel produced will increase and that will created additional demand for these additives.

I am watching the Stikine Gold http://stockcharts.com/def/servlet/SC.web?c=SKY.V story with great interest. A past mention from John Kaiser http://www.kaiserbottomfish.com/s/Home.asp along with increased volumes at the end of July put this one on my radar. This is shaping up to be a binary situation, all or nothing, at least in the short term. I tend to suffer from all or nothing thinking so I'm thinking I might do some trimming on this one.

We know that the sky is the limit in managed funds *gag* what about with SKY.V? It won't go to zero on bad news but the downside would be damaging. Just a few more sleeps until the target depth is reached.

I can deploy into my other current faves Composite Technologies (CPTC)http://stockcharts.com/def/servlet/SC.web?c=CPTC and Adanac Gold Corp. (AUA.V) http://stockcharts.com/def/servlet/SC.web?c=aua.v.

I keep forgetting to sell in May and go away. Next summer will be different!