GREY:BYVVF - Post by User
Comment by
yungcashon Aug 17, 2010 2:04pm
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Post# 17358120
RE: New Here
RE: New HereThe selling today to me doesn't indicate a leak of bad results. If that were the case, the selling would be a lot more frantic than it is.
The way I see it, the stock has gone up over 25% in the last week or two with no official news that has changed the story (and thus made it 25% more valuable than 2 weeks ago). All of this buying is on speculation that the drill results will be good. I don't have a problem with some investors selling stock to protect their gains in case the results aren't great.
That being said, I haven't sold a share. We're dealing with probabilities here. That is, what's the probability the results will be good and drive the price up? I think it's very good. The Rainy River property adjacent to ours has been proven to have great gold grades and we know the mineralization continues into the Burns Block. With such a tiny company (20.5mm market cap at 50 cent SP), the upside is HUGE if they hit gold.
So this is where I stand. I think there's a good probability they'll surprise the market with the grades they find. The stock could double (or more). What's the (less probabilistic in my opinion) downside? Well, the grades are bad or there is weak mineralization and the stock loses 1/3 of it's value right away.
I'm wiling to take that chance because my risk tolerance is high. Others might not be. For instance Gamblor sounds like he wants to buy a house. Why he's betting the farm on a probability, I don't know. But that's for him to decide.