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Exploring Yukon Gold Stocks

Exploring Yukon Gold Stocks

Investors are getting heated over Yukon gold exploration stocks, but the cold weather may put a bit of a chill into share prices until next season… During the dark and frozen winters of Canada’s Yukon Territory, efforts to explore and develop new gold resources are crippled. So work on Yukon gold projects is pretty much at a standstill right now. Some gold companies, however, have prepared for the wintertime lull in Yukon exploration by staking other gold claims in warmer global regions… Radius Gold (TSX-V: RDU ) Share Price $0.86 Exchange: Symbol TSX Venture: RDU Market Cap $63 Million Website www.radiusgold.com Radius Gold (TSX-V: RDU) is a precious metal exploration, joint-venturing, and royalty firm that is currently focused on gold and silver projects in the Yukon and Guatemala. The company is part of a larger group of mineral firms lead by Simon Ridgway, a world-renowned prospector and mining industry financier. Known as Gold Group, the firm includes Fortuna Silver Mines (TSX: FVI ), Iron Creek Capital (TSX-V: IRN ), Emerick Resources (TSX-V: ERC ), Focus Ventures (TSX-V: FCV ), and Western Pacific Resources (TSX-V: WRP ). For Radius Gold, Ridgeway and his team have assembled a regionally diverse portfolio of nine total projects in Canada, Guatemala, Nicaragua, Mexico, and Peru. The company has already entered into joint ventures on seven of their gold and silver projects with companies including Solomon Resources (TSX-V: SRB ), B2Gold (TSX: BTO ), and Kappes, Cassiday & Associates — one of the world’s leading gold experts in heap leaching. Right now, however, Radius Gold’s exploration focus are the company’s 60 Mile Yukon Gold project and the Holly-Banderas project in Guatemala. 60 Mile Gold Project, Yukon The 60 Mile Gold project is located in the world famous Tintina gold belt, and covers six creeks and rivers where placer gold was historically mined. Records show that 500,000 ounces of placer gold has been historically recovered from Radius’ claims. The company says that the project has strong geological similarities to International Tower Hill’s (TSX-V: ITH ) Livengood gold discovery in nearby Alaska. The Livengood deposit is currently home to over 7.6 million ounces of indicated and inferred gold resources. In addition to the Livengood deposit (marked #7 in the map below), there are many other world-class gold mines through the Tintina gold belt in Alaska and the Yukon. Radius Gold is currently working on three projects in Canada’s Yukon Territory click to enlarge In mid-August, Radius began a small seven-hole exploration drilling program at the 60 Mile project. The results were reported three months later and were encouraging — showing high-grade gold. But these seven holes are just the very beginning of all the needed to be calculate the size of a gold resource or reserve as standardized by the Canadian Securities Administrators. As I…

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The Fed Blows a Cupcake Bubble

The number one cupcake play in America is going public. Crumbs Bake Shop operates 34 cupcake stores from New York to California, humorously billing itself as “creator of the gourmet cupcake.” Owners stand to make up to $100m from the IPO, and the deal could price higher, with cupcake-mania hitting a fever pitch. At $100m, investors would be paying about $3 million per cupcake store.  Management is betting on aggressive expansion to fuel growth, and plan to open hundreds of new stores. Naturally, growing a chain of stores from 34 to 300 is no easy task. Recall the great donut bubble of 2003… Krispy Kreme (NYSE: KKD) was the darling of Wall Street. Its shares peaked at near $50 from a split-adjusted IPO price of $3.50, giving the donut maker a sky-high valuation of $3b (pdf). Shares trade around $7 today, up from a low of around $1. KKD expanded too fast, took on too much debt, and nearly went bankrupt. They also had some accounting issues, but those likely were probably just a side effect of a business-plan gone bad. Today Krispy Kreme is still muddling along, closing stores opened just a few years back. Expansion is always risky — especially when financed with debt and equity offerings. Hopefully Crumbs can avoid a similar fate, and follow the glorious path of Chipotle instead, which is up 436% since its IPO in 2006. In any case, I wish them well; I’ve heard their cupcakes are delicious. The larger point here is about what this cupcake IPO says about the state of markets. After all, it almost certainly wouldn’t be happening without all that Fed-injected liquidity sloshing around. Back in July 2008, The Onion published a prescient piece titled, “Recession-Plagued Nation Demands New Bubble to Invest In”: What America needs right now is not more talk and long-term strategy, but a concrete way to create more imaginary wealth in the very immediate future. Congress is currently considering an emergency economic-stimulus measure, tentatively called the Bubble Act, which would order the Federal Reserve to begin encouraging massive private investment in some fantastical financial scheme in order to get the nation’s false economy back on track . Even Jonathan Swift would have to appreciate satire so pointed. Unfortunately, the bit reads a lot like a Fed policy statement. Change the title to “Encouraging Risk Investment During Recession,” and any good Fed economist would nod along in agreement. The sentiment is identical. Bernanke has often stated that he wants to create a “wealth effect.” Push stocks higher, the theory goes, and people will spend more because they feel richer. Long-term thinking, truly… It’s been two and a half years since the Onion piece was written. Not only did we get one bubble; we got a handful of them. Notably in commodities, metals, food prices, and treasury bonds. Malinvestment and moral hazard ride on in 2011 One of the nastier side effects of “easy money” policies is known as malinvestment . It almost sounds harmless… mal- investment ( mal = bad). After all, everybody has a loser every now and then, right? The problem with easy money is that it inevitably spurs not just bad, but dangerous investments. During the tech bubble, it was countless doomed tech IPOs. In…

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NVIDIA (NASDAQ:NVDA) 2011 Growth to be Driven by Strong Handset Sales

Filed in Gold Bullion prices, Google, Google Android, NVIDIA, o, Tegra, Wedbush by on January 10, 2011 0 Comments

NVIDIA (NASDAQ:NVDA) should get the majority of their growth from handsets in 2011, which is a good thing, as they could get up to 25 percent share of Google (Nasdaq:GOOG) Android handsets, according to Wedbush.They said that “given the high-end nature of Tegra, we assume 20% 25% share of overall Android handsets and see a $260mn opportunity in 2011.” Wedbush also said NVIDIA should enjoy higher

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