If you own mining stock, you might have seen your shares taking a steady ride downstairs.
Anything that helps the sector ride out a bear market is welcome, which could explain why Stockpools.com – an online fantasy pool for publicly traded companies – is so heavily dominated by B.C. mining companies.
In fact, Stockpools.com was created specifically with Vancouver’s mineral and mining sectors in mind, said creator and CEO Neil Currie, a stock promoter who specializes in mining and minerals.
“I believe it to be one of the backbones of the Vancouver economy,” Currie said. “It really helps educate people on what we’re doing here in Vancouver.”
Currie said stockbrokers and promoters spend a lot of time online playing fantasy sports pools. He realized the stock market would lend itself well to the sport-pool model and launched Stockpools.com in November. It now has about 3,000 members playing.
Stockpools.com, which is free to play, allows amateurs and pros alike to hone their investment skills by investing in real publicly traded companies with virtual cash.
Anyone who signs up is automatically entered into a main pool, with 100 publicly traded companies in 10 categories. Once a week, winners get cash prizes.
Members can create their own pools, and companies or sectors can sponsor special pools that promote their own brand through contests and giveaways.
The site offers a variety of news stories, columns and reports that are of interest to investors. Currie makes money from the site through advertising and special sponsorships. He said that, thus far, all 25 advertisers on the site are mining companies.
“The Stockpools plan was really tailored toward the exploration and mining industry,” said David Brook, investor relations manager for Prophecy Platinum (TSX-V:NKL).
Prophecy recently sponsored its own three-month pool, with the winner – Marley Murphey of Port Moody – getting a one-ounce platinum coin worth $1,500.
“What we’re seeing from Stockpools, in particular, is not only increased traffic from that website, but longer duration,” Brook said. “They’re spending more time than the average referral site.”
Whether that increased awareness translates into any actual investment on Prophecy Platinum is hard to gauge, Brook said.
Though the site is intended to allow people who are interested in learning about the stock market simply have fun, there is an educational component to it that Currie hopes will help boost the profile of B.C.’s publicly traded companies. •
