Reasons for OptimismFrom a contrarian perspective, it's probably not such a bad thing that almost all the postings here have been quite negative since the release of NVT's results Friday after the close.
While I am disappointed that Ganarin didn't deliver something like 20 metres of 20 grams gpt on this first round of drilling, I believe there are several reasons for optimism with NVT:
1. First of all, DO NOT underestimate Mohan, Peter Tegart and the Nortec team. Remember, and this is fact, Mohan took Frontier Pacific from as low as 3 cents a share and less than a million in market cap a few years ago to what it is now today - 100 million in market cap with potential still for 10 times that. Almost everyone and his dog wrote off Mohan and Frontier and dumped shares down to 3 cents and have lived to regret it ever since. Mohan will make a big winner out of Nortec.
2. Almost everyone here seems to have lost sight of the fact that these results are from just an initial, first round drill program that was designed primarily to gain a better understanding of some of the structural controls at Ganarin. Viewed in that context, this drill program was actually quite successful, and lays the groundwork for a much more extensive follow-up Phase 2 program. Folks, there is visible gold in the Chamana Zone - we obviously didn't hit the motherlode, but there's a decent chance it's there. We just didn't find it on the first go-around, but how many major discoveries actually do? Mohan remains absolutely convinced that there is a sizeable gold deposit at Ganarin, and I expect these results will make NVT more bullish than ever as far as this project is concerned. There will be a major follow-up drill program at Ganarin in the near future which could easily generate a great deal of excitement and some much better results to go with it.
3. NVT was already at 20 cents when this news was released - how much further do you really think it can drop? There was no hype or speculation built into the share price prior to the results being released. This stock was trading Friday at levels we saw most of last year before a drill program was even announced at Ganarin. I have no doubt that some investors who bought in at higher prices in recent months will get frustrated and dump stock this coming week to get into other plays, and that's fine and even understandable. Those with a medium to long term outlook will see the value that exists here and either hold on or add to their positions at these attractive levels. I have no doubt that some new investors will jump in now, too, taking advantage of any reckless, emotion-driven dumping. Smart buyers will line up, and I believe you'll see that this stock will be a lot more resilient than most people think next week.
4. NVT has an excellent portfolio of properties and can easily raise additional cash, athough it has over a million at its disposal at the moment. The Labrador and Finland properties are next up in terms of drilling, and in the meantime NVT has much valuable information to evaluate and study from Ganarin. I'm sure we'll see an additional news release with regard to Ganarin after Mohan returns to Canada in a week or so.
To summarize, I know there are some investors here who are gravely disappointed that NVT didn't deliver a whopper of a hole to bring them almost instant riches. But I for one have total faith that NVT is going to be a huge success, and Ganarin will be making a lot of noise yet before too long. Mohan is a gifted geologist and I trust he'll do the same with Nortec as he did with Frontier.