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North American Gem Inc V.NAG



TSXV:NAG - Post by User

Bullboard Posts
Post by Pauly79on May 18, 2006 10:32am
299 Views
Post# 10863697

Comfort in a sea of turmoil

Comfort in a sea of turmoilOK, here's my take on the situation. The TSX-V has taken a severe pounding over the past several days. Globally, there seem to be two fears (1) lower than expected growth in China and India, and (2) inflationary pressures in many other parts of the world that might warrant further interest rate hikes that will dampen economic growth. Both of these fears translate to reduced future demand for commodities, and hence, commodity prices have dropped recently. Since the TSX-V is comprised largely of speculative commodity exploration companies, it has suffered a great deal. However, with respect to NAG and many of these speculative juniors, the state of commodity prices should be a secondary factor in determining the the company's stock price. Realistically, if Louise Lake and Whiskey Gap are home run properties, it doesn't make all that much difference if gold is at $720 or $680, or uranium is $43 or $38 - - the deposit on site will still be of significant economic value, and the company will have a property proven to have immense value. I think it is quite likely that investors do not (have not) appreciate(d) the true implications of what has been transpiring in world markets over the past week, and as a result have been dumping shares and running for cover. The success of speculative plays like NAG is more tied to their ability to prove resources and reserves, rather than 5 or 10% swings in commodity prices. That being said, if the sell of has been a result of people 'in the know' dumping because they know results are not good, then I'm going to be really sad about not selling my zillion shares of NAG at 32 cents. I'm still very long and have not sold a single share since last summer.
Bullboard Posts