Momentum and Junior Gold Exploration Companies
I noticed a lot of chatter recently on NFG being overvalued, SIC being undervalued, LAB and NFLD riding on NFG's coat-tails (oh wait, that was me....), etc.
In my view, if you are looking for good bumps in a company's share price that have staying power onward and upward in the exploration stage of a company's existence, it's usually about momentum - which companies have it, which don't, which are getting the attention, which aren't, etc.
How to get attention?
1) Put out frequent assay results press releases.
2) Produce assay results that blow all others in the region away.
3) Show you are the company that is on the move with superior land claims, more drills turning, more progress, more zones, the best assay results, the most assay results, etc.
It's possible that a rising tide caused by one company in a territory can life all boats, but I think the company whose doing the "tide-rising" will rise more over time than the other companies who are hitching a ride on their respective surfboards.
Now, long term, if a given company can eventually achieve these things, they will likely EVENTUALLY be rewarded. But in a gold rush situation like we have in Central Newfoundland at the moment, the company that is sucking up the most oxygen in terms of excitement and potential will likely be the one with share price momentum that proves superior to the rest as the companies move forward with their respective projects.
Today in Central Newfoundland, I think that company is NFG, and it's hard for me to see any other company in the region that will steal much of the spotlight away from NFG in the foreseeable future (though in the junior exploration game, I would not go so far to say it's impossible - just highly unlikely from what I've seen to date......).