RE:Muted reaction from market on great drill results megacopper wrote:
I was surprised by the market's reaction to what I thought was great drill results. So what does that mean? I don't know for sure because we could see a delayed response in a few days and the share price begins to move higher. Or perhaps the market thinks NFG is fully valued because it already knows the Keats Zone is a multi million ounce discovery so it doesn't consider more great drill results from this zone as a game changer. Whereas a new discovery (entirely new zone) or a real good intersection somewhere other than the Keats Zone could be considered a game changer and would have a more significant impact on the share price.
I think metal factors like we saw from Keats today are unlikely to move the share price in and of themselves. Now, if NFG can hit another jackpot core at Keats like they did earlier in 2021 (261 over 7 - PR April 20) (124 over 17 - PR May 4) (146 over 25 - PR May 21) or hit a second whopper at either Lotto (150 over 11 - PR June 23) or Golden Joint (430 over 5 - PR June 30), I would expect a good pop in the share price.
Or it could simply be that investors don't want to commit new funds to any investments right now due to all the uncertainty in the world due to the conflict in the Ukraine and instability in global markets.
Depends on the sector.
Oil E&P stocks boomed in 2021 and continue to do so in 2022 with the price of oil now over 110.00 a barrel (how much did you pay for gas on your last fill-up?) - the Russia situation has pushed share prices even higher as that country is a major exporter of oil and natural gas.
Conversely, the renewable space has struggled in general over the past 12 months.
Other sectors that have performed well in 2021 and into 2022 are Canada's Big Banks, Telecomms, and Mid-Stream (pipeline) companies.
Sectors where many stocks have taken a beating over the past year or so include Canadian Cannabis and Tech companies (especially small-cap tech).
Who knows what's in store for the rest of 2022, but there are many Canadian stocks that are at or near 52-W highs right now, so again, depends on sectors / companies you are looking at.......
I really don't know why the market sort of ignored today's excellent drill results but I am much more confident with my NFG investment today than I was a couple weeks ago.