RE: RE: NR next week on more Drill Results!!!!I agree... intense price rallies should always be viewed with a helping of skepticism.
The target price set by Earle is $4 - in a YEAR - not this week. Even then, it is SPECULATIVE - these drill results have helped to define the ore body, but the actual resource is subject to a heavy dose of speculation. Maybe it's one big continuous ore body, maybe not. Maybe there's 3.1m oz @ 3.4 g/t, but only if the speculation is correct. There's a lot of drilling to come that will help to turn speculation into reality. As the results come in, the fundamental value of the company will come to light. Earle's a good analyst, but even he doesn't know what lies underground in Tanzania. Maybe his analysis is correct; maybe not. It will be quite some time until we find out for sure.
In my opinion, this rally is probably too far too fast.
The stock has rallied 100% in a week. I made 60% on my initial investment - I pulled out at 1.52. It's very possible that I'll miss further rallying. But I've made a nice chunk, and the risk of losing those profits on a pullback bothers me more than the risk of missing out on another 20-25% gain.
People are impatient by nature - if this thing doesn't keep rallying and sticks around the 1.50 mark, I will bet you dollars to donuts that a good number of people will pull their money out and look elsewhere for 'the next quick gain'. The SP will fall, at least a bit, giving an opportunity for those with a longer-term focus to pick up some cheaper shares.
This is all just my musing - take it at face value. Good luck to everyone regardless of what you decide to do!