TODAY'S DISCOVERY, TOMORROW'S FUTURE

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Message: How can KXL shine (above the rest)

How can KXL shine (above the rest)

posted on Apr 09, 2008 05:21PM

I think one basic problem for all exploration companies is that today there are way too many. The number of companies and active projects seemed to have grown rapidly since the start of this commodity boom. I don't have any number, but the market cap of all exploration stocks at the venture exchange must have gone up serveral fold.

So the supply of 'exploration stocks' has increased, but what about the demand. Has the number of active investors in this field followed? I don't know. I suspect that a large portion of share holders of junior exploration companies are Canadians, maybe Aussis and a few others, again it would be nice to know. Dropping dollar(s) and predictions of further weakness is also not good since why invest in a canadian stock if the currency change will kill you.

Can we do anything about this relative low interest in juniors in the rest of the world? It is hard to tell, but I suspect that people who could invest in such companies may be the same people who are presently investing in new renewable energy type companies, and that field is all over the news every day all over the world. Massive promotion and 'education' about gold companies could help, but would be costly and who should do it? It may also back fire since some people look at gold as something for rich people only.

I suspect it is not much we can do in a general sense, except that the drill bit finds something juice. I think that untill we have prooven what I am sure we eventually will find, the share price will not increase much. The reality is that for us as well as any other exploration stock is that we really are worth nothing until we cross some threashold and suddenly have an economic deposit. That I expect to happen in 2009. However i still think that 5$ should be attainable by the end of this year with numerous exiting(but not sufficient) news later this summer and fall.

The upcoming NR I don't think will make much of a difference except if it is very different from previous ones.

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