Dear Feather61 (aka Spiderette):

Your dilemma - that of choosing between SPQ & FWR - is a nice "win win".

A while back a wrote a response to a private message dealing with my present investment philosophy. I say "present" because I have changed my view of how to possibly make some spectacular money on the stock market. I made the change because of my personal risk tolerance. This philosophy is certainly not for everyone. Moreover, investing in the broader stock market with a balanced portfolio will allow you only to track an index. What ... 6% or so per year. If I was 18 all over again, I might think about it.

There's a rather smart guy by the name of Warren Buffet. He's a billionaire, and he's a value investor. He finds a solid dividend producing equity that's been beaten down, and he invests. But he invests big time - no nickel and diming here - not just 100 shares or so. Generally 1000's of shares or millions of dollars. And he does this because he spends a honking amount of time on due diligence.

So how does this apply to investing in SPQ or any of the other Ring of Fire juniors?

First, none of us are billionaires (at least not yet). Second, SPQ is far, far, far from a value stock. It's exactly opposite. It's big time speculative.

But ... but ...but it's cheap, real cheap. Any schmuck like me can buy a pile of shares. So, that's the investing big time. Not hundreds of shares, but thousands of shares. It doesn't take a Ph.D in mathematics to multiply 50000 shares times $3.03 (thanks Chrism) and come up with $151,500 . Not a bad chunk of change. Big number of shares = big return on investment (ROI).

But are we certain - absolutely certain - we'll get this return? Sadly ... not at all. Remember, SPQ is very, very speculative. Big risk.

However, many posters on this forum are doing due diligence - just like Mr. Buffet. Many are very good with interpreting geology. Many understand the business of drilling. Many can read through SEDAR reports and interpret the language found therein. Due diligence mitigates risk.

So would I invest a chunk of change in SPQ? Yes, I would; and yes, I have.

Everyone has there own reasons for investing, and specifically investing in SPQ. I want to be successful with SPQ, make no mistake about that. I have a lovely wife I want to take care of; I want some of the nice things in life; and I want to help others. I have a couple of children, one in Columbia and one in Sri Lanka, I want to take care of.

But I don't covet anything. This would screw everything up. I wouldn't think straight. I've made a lot of friends on these hubs who have helped a bunch with understanding SPQ. I want to help them too.

Humbly, Snug :)