The Wealth of Generations, Work in Progress

The Wealth of Generations was started to interactively discuss and collectively learn to understand the "new" political economic paradigm. Central in our discussions is the Rationality of Investing. Articles are continuously revised.

13 January 2010

Evaluating Gold Juniors - Jim Sinclairs Criteria

Management ethics, found out by checking litigation, criminal and credit records. All this information is now easily attainable.

Cease Trade Orders or Bankruptcies

Penalties or Sanctions

A property or properties with outstanding upside promise sustained supporting data.

History of success both on the ground (properties to mines) and in the financial markets (stock performances of at least 10 to 1 value).

Strong hands on board

Key man insurance

Order of succession in place

No anti-takeover devices written into the indenture of your certificate.

Availability of knowledgeable person in the company to speak with.

You retain a property-qualified geologist to perform a desk review of all exploration, development and production information at company headquarters.

A property visit by this consultant if the position is to be of significance.

The company has access to financing.

The company has used financial restraint, therein having control over insider options, preferably none.

The company has no warrants outstanding.

A significant short position at this time is highly desirable.

The market must be liquid so therefore some respectable listing is preferable.

Preferably not listed on the Frankfurt Bremen Exchange.

Key executive and board members hold a reasonable amount of shares.

Goodly number of stockholders.

Owned by but not primarily owned by some respected fund interest.

Preferably not in any index.

The company has a good Sarbanes Oxley program with financial checks and balances.

Audited by a respectable firm with special attention to who does the subsidiary audits if offshore to the venue of incorporation and trading.

No comments:

Post a Comment