A review on the e-book Mining Stocks Guide.
The Mining Stocks Investor Guide (MSIG) is a must-read for those who are new to the mining sector. In fact, in all my reading I haven't found another book that summarizes each of the primary topics associated with mining stocks investment like James and Kevin have done. A lot of the publications I've read touch on a few of these topics, but never all of them. I applaud James and Kevin for broaching the nearly unspoken topic of promotion, which can put some people off speculating in these stocks because the odds seemed stacked against you.
The guide not only summarizes the primary topics within mining stock investing, but also uses mining stock case studies to illustrate their points, which I find is a highly effective way to demonstrate to the reader the importance of doing your due diligence. For beginners, this is invaluable information and will help you make sense of those sometimes confusing company news releases.
From my perspective, the book is broken up into 6 key sections. Below, I have listed these sections and made comments about what each topic is about and how you will benefit.
?EUR? Mining Introduction - a look at why to invest in metals and mining, as well as a brief history
NOTE - This is the most widely written about topic for the subject, as many authors include a history and why to invest in metals and mining, in some degree or another. James and Kevin actually refer to this point and suggest a few sources that the reader can check out. I'm glad they didn't spend too much time here - it isn't needed and wouldn't be the reason to purchase this book.
?EUR? Company Specifics - a look at who (management), where (location of property) and the share structure of the company
NOTE - this is the most common topic reviewed by book and newsletter writers. Arguably, the most important of all the topics to do with mining stocks.
?EUR? Drilling -in my opinion, probably the hardest topic to wrap your head around, especially as most of us aren't geologists
NOTE- the details of this subject are often neglected by other writers. Typically, the reader is left with drill hole results with a grade (g/ton) and a width (metres), but no real explanation as to what it really means. The MSIG does a very good job going into more detail on this subject, which is invaluable to those who don't know anything about it. By reading this chapter, it's my contention that you will already be ahead of 50% of the speculators in the space. If you want more detailed information on this subject, I'm in the midst of finding some sources for you - stay tuned!
?EUR? Industry Standards - reviews all of the important terminology related to company news releases
NOTE - This topic is much more valuable than you may think, and something that shouldn't be skipped. If you want to understand what the companies are telling you in their news releases and why you should or should not trust what they are saying, then read this chapter.
?EUR? Reading Between the Lines - reviews how companies promote their stock
NOTE - personally this is my favourite chapter and an invaluable one to the reader. The subject is seldom discussed in this much detail. I bought one of their book recommendations Canadian Mining Speculation, by T.H. Mitchell and will let you guys know if it is worth the read.
?EUR? Trading and Private Placements - a look at some investment strategies and what private placements are and how they can affect you
NOTE -pay particular attention to the private placement write up, these are what you want to strive to invest in as they give the investor an unbelievable advantage with the all-powerful warrant.
This is my favourite section of the book because, in my opinion, it hits at the heart of why so many speculators fail within the mining sector. Emotion kills logic, and in mining stock speculation, especially the junior companies, this is a slippery slope. There are many investors that are able to make money off great promotion, however, generally speaking, this is a tricky game to play and one where the average Joe is typically going to lose.
In my opinion, I would suggest speculating in companies that actually have good management, a good property and a good share structure, not the latest hype or hot story that you come across. Do your due diligence. This is how money is made consistently in the business and will always be the best choice for the average Joe.
"A major challenge for an investor in the mining industry...is separating the companies committed to finding the next discovery...from the companies with "moose pasture" and good promotion teams." ~Mining Stocks Investor Guide, 22.
For me, the best sub-headings within the Reading Between the Lines section are: ?EUR? You Don't Know Jack - How shares are divided amongst the insiders and where you are in the pyramid ?EUR? Promotion - what it is and what it looks like ?EUR? Five Methods of Manipulation - the stock price and propaganda
Read this section twice and never forget it, resist the hype until you have investigated the company! I have gone into a lot more detail about emotion and decision making in a previous post, check it out: http://www.juniorstockreview.com/2016/03/29/seeking-wisdom-a-look-at-emotion-decision-making/
You may be thinking to yourself, 'why do I need to buy this book and learn something that I pay a newsletter writer to know?' In my opinion, you're partly right as you should be able to count on a newsletter writer to make good choices when it comes to their picks. However, knowing this information should make you more confident in your ability to let the right people influence your behaviour in the market and make the right choices in the stocks that you're going to buy. Most writers, especially during a bull market, are going to have plenty of picks for you to choose from, and you need to have some criteria to use to narrow down your choices - you can't kiss all of the girls (or boys).
Like I said, this is a great place to start for anyone who's looking to wet their feet in mining stock investing. I do believe, however, that an intermediate would find some value in this book, just as I did. Especially when you consider that the book costs less than a case of beer, how can you go wrong? You can visit James and Kevin's website, miningstocksguide.com to purchase the e-book. You won't be sorry you did. And, just a reminder, take a few minutes to read my interview with James. The details of that conversation can be found here An Interview with James Fraser
until next time,
Brian