Jim Letourneau's Blog

Retired Life

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Thoughts on the Toronto Resource Investment Conference

The Toronto Resource Investment Conference provided investors a broad array of investment opportunities. I am continually amazed that people with a strong aversion to paper money and a love of gold have such a love affair with junior mining stocks. "Cheap paper" is a term often applied to the shares of low priced junior mining companies. Of course a successful junior explorer can change your postal code but the odds don't favor the ill prepared.

The largest crowds were on the Saturday afternoon panel where Diane Francis and Kevin O'leary packed the main hall. O'leary comes from the "you only need to get rich once" school. He told the story of his mother buying Bell bonds and never spending any of the principle. He won't by companies that don't produce free cash flow.

Dianne Francis, while being a director of Quebec gold producer Aurizon Mines Ltd. (TSX:ARZ; NYSE Amex:AZK), was not an advocate of buying non-producing companies. Fortunately people have very short memories and the advice of the experts was immediately ignored as attendees  tried to find the next home run junior mining stock. Exhibiting companies in the adjacent exhibits hall were pleased with the crowds interest and enthusiasm. The stealth bull market continues.