New Found Gold Corp V.NFG

RE:NFGC 20-59, NFGC 20-41 and NFGC 20-43

[AlwaysLong683]

All the jackpot holes NFG hit during the first half of 2021 have likely long been baked into the cake re. share price as the 52M outstanding shares (32%)  not owned by the big investors, management, or other insiders have largely determined the day-to-day share price both when the shares shot up in the first half of 2021 and their subsequent fall after that.

At the beginning of 2021, NFG traded at around 4.20.

By the end of May 2021, it was trading as high as 13.00+.

That's a five-month gain of over 200%.

Now, the share price has obviously come down very significantly since then, but I believe the combination of far-less-impresssive assay results during the second half of 2021 up to today has dampened enthusiasm for the company. However, I think the story remains intact, but it may take quite a while for the payoff.

Predicting short-term share price moves is pointless IMO. If you believe there's a lot more where those early 2021 jackpot holes came from, whether it's new monster hits in existing zones, new zones, or (eventually) at much lower depths, the wait may be longer than you think for the share price to really spike.

The one short-term way to get a (likely) very significant premium to the current share price would be for NFG to sell to a producer, but if Palisades / Sprott are committed to "drill baby drill" for many more months or years, I suspect the only way the share price spikes is if they hit another number of motherload cores in succession (like they did in the first half of 2021).

The market cap is still over 1.2B according to TMX Money (similar to what it was in May-June 2021), which is likely the result of many more shares outstanding offset by a lower price per share, so I think people should realize that, even with what I think is the best junior gold exploration-stage company I can find, those expecting near-term breakouts may be disappointed.