To account for when significant events occur, we look to the market. Never mind the noice....what we are being told. For instance, on July 15 NOT goes from a previous close of .63 to close the day at .99 on over 15 million shares traded. Rumors begin to circulate as to the cause of such a move. Management follow with a news release to state there is no material event to cause such a move.
Now, we are being told that the huge rise in our share price was due to the visuals given on hole 49.....are they kidding....the visuals on hole 49 came to us in an exploration update on June 29....the stock went from .56 on June 29 to .63 on July 14. The fact of the matter is....they told us nothing in that news to suggest even close to what actually transpired. There was a leak....plain and simple.....on July 15. Then from July 15 onwards, the stock traded over 1 million shares/day for the next 21 consecutive days. Of those days, the stock traded over 5 million shares for 9 days. The stock went from .63 on July 14 to a high of 3.01 on August 4, the day before the news. The news comes on August 5....that's almost 3 weeks after the market knew something. How is it that the market knew something and management knew nothing?
Then we get the great news.....and what happens.....the stock goes down for 5 consecutive days.....after the great news. Sure brings alot of truth to the old saying, buy on rumor and sell on news.
Now....with this latest AGM....now we are to believe that everyone will get the news at the same time. You would have to be brain dead to believe that for one second. First of all, what is coming down the pipe is already known by many. They have drilled several holes since announcing the results of hole 49. OK....so lets guess how many are in the know already.....
1) the drillers who drill the holes
2) others at the camp at the time the holes are drilled
3) management is informed what is found visually
4) management is seeking investors....wink wink
5) cores are shipped to the labs
6) the lab tech's have never seen anything like this
7) all of the above have friends and family trying to make ends meet
8) friends and family have other friends and family....who have cell phones and computers....ect...ect
History shows with this stock....and many have complained....that when good news is announced, the stock always goes down. That is because those in the know get in weeks before we get the news.....then they sell to the retail once the news is revealed.
You will know when we are getting close to news cause the stock will run up before the news; to a value higher than that for which the news is worthy of. Those in the know will start things off.....therefore, they will be the first one's in. By the time retail realizes something good is coming, they've missed out on the initial run up. Then again, the good news comes....new retail buy on the good news from the one's in the know now getting out for their quick profits. This will play over and over again....several times already....many more times to come.....
Once you understand this pattern, you learn to time when to get in.....and when to take some profit. I am expecting some good news.....I believe there was a step out....I believe the size of this deposit will more than triple. I don't know when the news will come, but judging by the share price movement, we are still a couple weeks off at best. This thing will run well before the news and hit it's peak again right before the release. Then again....it will be profit taking time.
Something for the history books
