Money Talks, BS Walks

With the demise of the junior stock markets this past year,there is one thing very evident and that is 70% of the Venture Exchange now have a very rough time raising money in this new era of no more easy credit, if being able to raise even a nickel.

On one hand this makes it somewhat easier for the junior stock picker to narrow
down their choices. But on the other hand,there are still many companies who are still out there pumping their dead as door nails plays who have already blown their brains out with the easy cash. Their only hope is to lower their warrant prices and hope they suck in enough sheep to keep the lights on. Don't be one of those sheep.

This brings us back to the types of companies you want to hunt for and that is :

1. Up and coming companies with really good projects that have the potential to attract the big money.

2. Companies with the quality management who have the ability/connections to actually raise the money.

3. Companies that have viable projects that will attract new shareholders after the financings.

4. Finding these companies before they raise the big cash.

5. Try to find companies with low share floats,anything under 20 million shares is my usual target for a new company. I will buy into high share float plays if they have something very good, but only for a brief trade with a very low expectation on price gain.


Small financings are the norm in the beginning when they need to raise a million or less to get some early exploration or basic business accomplished. If you miss the first leg up from say 15 cents to 25 -30 cents you haven't necessarily missed the boat. This is because if you really believe you have found what I call "the real deal",then the next step will be for the company to show their hand and try to do a much larger financing at much higher prices in order for the company to reduce share dilution. As well, bigger money attracts the bigger interest from their big money contacts that can really move a stock price if your stock pick has the goods.


As I stated before,these tips most experienced players already know,but are posted for those who are new to the junior game or still haven't quite have it figured out. The less time you spend in the school of hard knocks the better.