Eaton Vance Short Duration Diversified Income Fund T.EVG

from grandich smoke no fire for evg

[fatman3]

Grandich Client Update – EVG, More Smoke
There’s an old saying that where there’s smoke there’s fire. Today’s release by EVG once again demonstrates smoke but no fire. Please keep in mind that’s quite common in the exploration game. The problem usually is how much does one spend before finding the fire and how much dilution can one absorb before much of the upside is eroded?
The recent news of Goldcorp’s investment certainly underpinned EVG’s exploration programs for the foreseeable future. In fact, it’s noted in today’s release that an additional rig will be added.
While there’s no reason to set off fireworks over today’s release, I do think one can walk away feeling a few pieces to the puzzle may have been put in their place and management has a better understanding of what they may be dealing with at both projects. I also would pay attention to the notation made about Rattlesnake that said:
“…Coupled with the distribution and intensity of potassic alteration and the nearby mineralized porphyry dikes in RSC-027, the mineralization at the bottom of RSC-006 is interpreted as potentially peripheral to a mineralized porphyry…”
looks like old peter is putting some spit and polish on poor news