RE:RE:RE:GSTM is looking good for next year Countrygent wrote: I know there is a different strategy of accumulating multiple positions in greenfields plays with the idea maybe one in ten or so might be a home run, and by being quick to trade and buy on top of preliminary discovery one can more than pay for the dusters and duds. Personally, I'll give up the early jump, and bet on post-discovery plays when they suffer undervaluation - there always seems to be some moment of delay or market downturn when excellent properties are deeply undervalued - after initial excitement wears out, hot money has gone, the grumbling and facing dilution and financing of the long slog towards proving up a mine begins. To me that's the sweet spot -
Great post as usual CG. I'm going to take the other side of your argument to make it interesting.
I am a big fan of the earliest jump possible. I want to buy into a company for pennies that seems to have absolutely nothing going for it, except I can see the properties it owns have some potential. In the past that idea has led me to buy Teuton at 6 cents/share back in 2015 and Eskay Mining at 7 cents/share in early 2019. If I had waited on Eskay until it began to move in 2020, it wasn't because of a discovery - it was when Quinton Henneigh came into the picture. I sold the last of my Eskay in March of this year at an average of $2.68 - those shares were a 38-bagger. I've cashed in some of my Teuton at the same level of gain - some I was able to sell when it was over $3/share US$. I just haven't been able to achieve those kinds of multiples if I chase a stock after good news comes out.
We can do a test here if you want to have some fun. Pick a stock that has had a discovery and has come back down in price to where it's badly undervalued (I have several of those as well). I'll pick a stock that has absolutely nothing going for it, and we'll track both to see how they do.
I'll go first:
EGR Exploration. I'm buying now at about 5 cents/share. It just rebooted (it used to be Gambier Gold). Former management looted the company and were booted out in June. The new team has not yet made any significant moves, other than to name a few advisors and consolidate the stock 1:3 - and has no cash. There are 16 million shares of stock for a market cap of less than $1 million US$. They have one property of note - Detour West - and exploration so far has netted nothing but dusters. That's what the market appears to be seeing.
What I see - Detour West is on trend from the Detour Mine recently acquired by Agnico-Eagle when they bought Kirkland Lake. On the other side of Agnico from EGR is Wallbridge, also on trend, which is about to upgrade their maiden resource estimates shortly. Crescat Capital has 10% of EGR (yup - Quinton Henneigh). Another 18% is owned by a family office in Germany. The market is valuing these aspects of the company at zero.
As with Eskay and Teuton, I'm probably in for the next 3 - 7 years so this could be a looooonng competition, and maybe we should play it out on the EGR bullboard since there is no one there anyway :)
As it relates to GSTM, there's a strategy to sell now, wait for a better buy price or some news and buy back in lower. I'm flipping a coin right now on that decision. The reason is that both Dino and Ken Konkin have a great deal of knowlege with those claims and may just have something up their sleeve for next year in terms of quick results. They just successfully funded at $4 million, so I'm not sure they will wait another full year to drill. I would hate to sell now and have to chase it later. I'm sure it will decline to some degree over the winter months. I just can't get to the point of pulling the trigger on it for now. As of today those properties don't seem to be on trend with anything, but if they find something, all of a sudden it's on trend with everything because of the Kyba Red Line that goes up to KSM and being south of Brucejack. Anyway, that's my thinking on GSTM. I don't have the guts to dump it.