Seabridge Gold, Inc. (USA) (SA)

Relative Bounce Likely Complete, Fall to Resume

portefeuille - http://caps.fool.com/player/portefeuille.aspx

This is a good buying opportunity, oversold.

Just adding some gold to my picks. Don't rely on me to make these kinda calls (there is plenty of gold bugs on this board already...)

Stock will fall back around the 18.50 area. Tech Indicators show that the stock moved up way to quick...!! Great "Put" play..! I'd lock in for a 6 month window just to be safe..! But I'm thinking you'll see the move around October, November.

largest undeveloped gold company in canada

They are finding more and more gold as they take more soil samples throughout their properties.

Major gold in the ground...takeover coming

When things turn around it will be a result of the governments around the world having pumped money of all kinds into the system. This will cause a surge in inflation as economies start to tick up. That's why I've been and continue to be bullish on precious metals and the miners of said metals. Really, anything that is sensitive to inflation is a good place to be.

The armageddon nuts and gold bugs always think that gold is the place to be, but in this case that does not mean they are wrong.

You can blame TMFBreakerDave for me adding pitches to so many of my picks.

STOCK SCREENER METALS & MINING
PRICE TO BOOK >5
PER IBD MINING COMPANIES ARE LAGGING RALLY DESPITE THREAT OF INFLATION

High gold reserves, low cost development potential, could be good candidate for buyout.

When they release their report (Feb 09)of the drillings they made in the summer this one should pop to around $30 or so. I have a feeling that the report will show a huge reserve and with Gold prices rising SA is a good spec play on Gold

OK, This is DEFINTELY not for the faint of heart, but you are looking at the possibility (if all goes well) to make some serious money.

Let's be clear (because I almost made the mistake) SA is not a gold MINING company. It does not own any GOLD MINES. It does, however, own mine properity rights to several claims, the most important claim (and the one that will hopefully pay off for the investor) is the KSM claim which recently hit the news as being potentially one of the biggest claims in the world.

So how will this benefit the investor? Well...you are basically betting on two things

1) the KSM claim is in fact going to live up to it's expectations of being one of the largest gold mines in the world.. but also one of the lowest cost to operate due to the mine conditions (the president expects operating costs of sub 400$ per ounce level.. typical cost to operate mines for gold ranges from 450-600ish).

2) someone will actually come and buy this mine from SA within the next few years.. and for a decent price. Right now at 13 dollars a share you are betting that the price they get will be at 40 dollars per ounce or so (which was the most recent mine purchase in south america . If the purchase takes place at that level and the estimated claim projection of how much gold is used then technically the stock could jump to around 40 dollars per share... that's a lot of ifs though

3) The life of the mine will live up to it's 30 year analyst projection. OK as the CEO again himself admits to .. 3.4 B to build the mine is a hefty sum (expecially in todays market) and no one would touch that with a 10 foot pole unless they honestly predict the mine to outlast the initial investment.. which means it has to operate for a minimum of 5+ years. Since the projection is that the mine will last into the 30 year mark.. that means that they have 25 years of profit to continue on.. tempting if the analyst report is correct

4) August 2009 will pan out for SA. Keep in mind the report on october is only on the findings of the previous years mine analysis. There have been more holes dug, more cores taken etc and a new updated analysis is set to be released in the Feb 2009 timeframe.

Now the president/CEO states that he expects it to be even MORE favorable. I am betting that the investors are not the only ones waiting on that info.. but the mine companies as well to see if they want to try and snatch up the mine. Regardless if it is favorable it makes it a more tempting possibility for gold companies to make a bid.

It's a lot of IF's.. and a lot of risk. If any of the reports go askew.. if mine companies don't want to buy any mines until they are seeing a increase in gold... then you are sitting on nothing more than a future (who knows when) property right.

SA does not post ANY revenue.. they only have mine rights.. this is basically a shot in the dark

Personally? I am going to throw 1k it's way and see if it pans out

Cheers

PS take a look at this report

http://www.seabridgegold.net/FraserMackenzie-Apr29-08.pdf

also the seabridge website has some good resources on interviews etc with CEO and other analyst projections

I expect to ses a rally in commodities early in 2009.

bottom is in

This Monday December 1, 8:00 am ET headline says alot.

"Preliminary Economic Assessment Completed for Seabridge Gold's KSM Project

Base Case Estimates 30 Year Mine Life Recovering +19 Million Ounces of Gold at Average Cash Operating Cost of Negative US$11 Per Ounce and Total Costs of US$233 Per Ounce After Base Metal Credits"

from now on i'm going to be shorting everything TMF pumps on the front page

Dreadful chart pattern forming...could trip and fall lower from here.

possible buy out of Seabridge and this could either rise or fall...I am betting it rises...potential suitors include abx, slw and some other major players see motley fool article dated today! 12/4/2008