Capital preservation is one of the most important things you can do when a stock you own is working against you. Sell it before it chews up your money. When a stock breaks below support its time to evaluate your original reason for buying and start playing defense.
When I read the following in any report it gets me a bit antsy. “The company does not have sufficient working capital to meet its obligations for the next twelve months.” Understanding the nature of junior exploration companies and their never ending quest for new money to advance their projects is one thing but to be sitting on $16,887 in cash is quite another.
At this particular point in the company’s history they are using the shotgun instead of a rifle in an effort to find a property that will get them to focus on one prospect to the exclusion of all others. It is also interesting that when you survey the management team at CAJ they all have backgrounds in finance and accounting but none seem to have technical expertise in geology or mining.
