Peregrine Diamonds Ltd. PGDIF

RE: RE: Do I hear

[Durkastan]

In my opinion, if you bought in at 1.70, you should just hold onto those shares.

The support for this stock is pretty firmly established at the 1.50 level, so I consider that the downside unless there's some really bad news, such as the CH-6 mini-bulk coming back with poor results (highly unlikely).

This stock is doing what it's doing because this is a time of uncertainty - both in the stock and in the overall market.

The uncertainty with this stock is that PGD really needs to find at least one other kimberlite with results like CH-6 in order to make the region economic. As it stands right now, it is unlikely that anyone is going to build or buy the necessary infrastructure (roads, mines, heavy equipment) simply for CH-6, even if it turns out to be as full of diamonds as hoped. There needs to be another diamondiferous kimberlite discovered in the region, and the drilling program currently underway carries the hope that such a kimberlite will be found.

There are 2 possible catalysts for a rise in the SP this year:

1) One of the new kimberlites that are being drilled turns a nice sample - it doesn't even have to be as nice as CH-6, but it is going to have to be better than any of the other 15 sampled kimberlites.

2) The CH-6 mini-bulk sample beats expectations.

Whether either of these events happen or not is simply speculative. We just don't know. But that's the "fun" of following stocks like these!

I don't expect to see results from either of the above events for 1-2 months. Expect the SP to languish around here until then, unless macro events significantly affect overall investor sentiment.