EAS.v - underestimate this upward strength Even the greatest underestimate the bull strength of this stock.
I sat on the bid twice this week @ 13 cents and never got filled, even though one time there was hardly any other bid support. The price hit 13 a couple of times, including this morning, when I had given up and was trying to catch something else. I am disgusted with myself today as I see EAS did what I thought it was going to do, with another closing weekly high on strong volume. Sometimes I get too cute with my trading objectives instead of just seeing a solid opportunity and getting more shares. As it turns out, I did not trade anything today as none of my stacked sell or buy orders on any of my watch list were filled. I continue to hold a core position in EAS and will hope for one more shot at cheap shares next week perhaps during Comex option expiry. With gold breaking out above $1900 today I think an emerging producer with a tiny market cap like EAS is a pretty solid spec story, although that market cap is gradually creeping up now.
I still consider this one way off the radar and eventually the thundering herd is going to find it and bid it a lot higher. There are several peer companies on my watch list this month that went for a moonshot out of the blue, and most of them are concept stories that depend on either continuing with successful exploration or else achieving profitability from marginal mining operations. It remains to be seen what the scale of production EAS is going to start with, and the subsequent earnings potential, but considering the gold defined so far I feel like most of the risk is already behind this one. Assuming that project financing can be secured in this bullish market - and I think that is not going to be a problem - it comes down to a conventional surface extraction, low cost heap-leach processing scenario where even modest gold recovery efficiency would generate robust profit margins. As these blanks get filled in with more disclosure and management guidance, I see a solid outlook for this one to continue running. There are still some hurdles to clear and nothing is sure until its in hand, but I am going to accumulate more shares on the next dip.
cheers!
mike