UNEASINESS?

TEC / CVI

A couple of my order got filled ($3.60 / $3.50) this morning. While I continue to add positions in juniors, I do feel a bit of uneasy. Where’s the uneasiness coming from?

VALUE TRAP?

BSX

While there is no doubt that BSX is cheap at this point, it appears that it has become a VALUE-TRAP for near term. I would incline to hold the shares and give it a chance, but the options are speculations and should be disposed as soon as a gain is achieved.

IT'S A HARD DAY!

BSX

I guess it’s not my day. First, PD converted as expected (my thesis has been right!). Unfortunately, I have left the town empty handed. Then, in the middle of a rather boring, slow trading day, BSX warned, announcing that its Q3 top- and bottom lines will likely be “soft�, and it promptly went down by two bucks. It seems every time that I buy something on cheap, I end up getting burned (NSTC, BSX). I could choose to get out here, or average down a bit. I elected the latter course, picking up some out-of-money option on cheap. This is getting really speculative, buy my cash outlay is rather small, and risk/reward ratio, IMHO, is in my favor. BSX is now really cheap, trading at 12X of E05, and 10.5X of E06, and it is supposed to grow at least 10% next year. The key is that the downward revision to stop. There could be a couple of other catalysts on the litigation front. I guess we have to wait and see.

GNY

I also started to execute my play to add some juniors for the winter drilling season. I plan to allocated $10K among five juniors. My first pick is GNY at $5 this afternoon. I am looking for strong production growth, decent reserve level, large land holdings and reasonable valuation (which is extremely hard to come by).