Yesterday, there were several posts implying that we had 50+ million tons of high grade nickel. When Mucker made some excellent posts to counter this enthusiasm, I decided to follow his lead. I too, think this has not been proven and is only speculation at this time.
I've been in Noront before the Eagle 1 discovery and I am a gold/silver mining investor. I was in for Windfall. However, when Eagle 1 hit, I came to enjoy reading this site every day. I have read it nearly daily for more than 2 years.
I never sold because of Noront's land position. I always felt more nickel would be found. What were the odds that Eagle 1 was all there was?
Sum4All wanted my arguments for why Noront is not the best bet in town, so I will give them. I still think it is a good stock and could easily double or triple in the next 12 months. If we get bought by a major, it could jump to $8 or $10. But that is about the top and here's why:
1) America is on the verge of bankrupty. The financial sector has not cleaned up the existing toxic assets, and those toxic assets are growing. In July, 13% of households did not make their mortgage payment (http://globaleconomicanalysis.blogspot.com/2009/08/hidden-backlog-of-foreclosures.html). In Florida it was 23%. Consumers are broke and declaring bankruptcy at record numbers. The amount of debt (household, business, and governmemt) outstanding is staggering. Bernanke in a speech last week said the Fed saved the world and that the worst is over. The fact is, there is not enough cash to re-liquify the economy. Next year you will know what I mean. 2010 is when it hits the fan.
2) Europe is tied at the hip with America. When America goes down, so will Europe.
3) When you combine the global economic might of American and Europe and implode both, there goes the demand for base metals.
4) Asia and the Middle East will continue to grow and use more base metals. But overall global growth will stagnate.
5) The coming energy crisis in 2011/2012 will have a damaging effect on the global economy. Pushing growth rates further into decline. For those of you who deny the fact of peak oil, when prices hit $150 a barrel you can blame it on manipulation.
I hate to post this and tell the truth as it tends to hurt the stock price. However, until we get to 2011, the world will continue to be in denial and will ignore people like me. Capitulation that we are screwed economically won't happen until late 2010 or 2011.
If you want to make some real money, look to gold and silver mining stocks. These are going to the moon, or maybe mars. But don't sell Noront until they get bought out. This is fun to follow.
Newager
