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North American Gem Inc V.NAG



TSXV:NAG - Post by User

Post by Saturn4on May 20, 2009 7:06pm
456 Views
Post# 16005280

Here's What I Think ...

Here's What I Think ...
Right now, NAG is a pure spec play.  They have lots of properties such as LL, Sask. permits, W.V., now potentially Kentucky and others.  After the market meltdown, speculation was taken out of virtually all stocks (and then some) and now money is hard to get.  This is a tough economic environment.  Right now, as we speak, all NAG has is lots of potential but very little money.  I think the last (a few weeks ago) I talked to IR they said about 1 million dollars in the bank.  Realistically,  that's not enough money to explore Sask. - especially with all the permits they have.  I think that's why the s/p is so low right now.  W.V. or Kentucky do not appear to be factored into the s/p.  After all, we do not know how much coal there is nor do we know the price it might get.  No feasibility study that I've seen.

As we all know, NAG is focusing on W.V. in the hopes of producing ASAP.  From what I was told, its cheap to get into production after all the hoops have been jumped through (i.e. permits).  I have been told that if all goes well, 1 million dollars is more then enough to get production started.  Don't quote me on this, but I believe IR said that the bills get paid (i.e., contractor) once NAG gets paid.  So there are very few start up costs.  My guess is that within about 2 months NAG should start producing. 

Although the focus is on W.V. - With the money it has, NAG is doing the ground work on the Sask. properties too (JV's, surveys, drill permits etc.).  As well, NAG is looking at other productive properties in the short term (i.e., Kentucky).

Bottom line ... W.V. becomes very very critical in the overall scheme of things if NAG's plans are to be fruitful.  If NAG gets W.V. into production relatively shortly and it starts generating good revenue ... look out.  I think by that time the markets will be healthier (i.e., coal prices) and Sask. coal will be super hot since many of the other coal plays are getting ready to drill as well or are in the process of permits.  Plus, GXS' is idle right now, but I think we will be hearing some news there soon too. 

I'm getting excited just thinking about it.  BUT, like I said earlier, I still think this is a spec play.  If something goes sideways with W.V. - and lots could still happen - well then we may see more share dilution or reverse split or whatever... but it won't be as good as if W.V. takes off.  Although, Kentucky may be something to fall back on... Plus, if the markets tank again -- well you guys know ....

Its a risky play, because the success is determinative on a number of factors.  But, I think NAG is on the right track.  After all, isn't this what investing into the venture is all about?  Lots of risk, but lots of rewards too if all goes well.   NAG may become a powerhouse  in the coal market!!  If that happens you know where the s/p will be heading!! 

This is just my short opinion on what I know.  I may have missed  a lot and I'm no expert at any of this.  Please research NAG yourself and let me know what any of you think ... definitely do not rely on what I'm saying cuz i could be waaayyy off.  I trust in myself, but i don't think you should be trusting anyone you do not now and who is not versed in many many aspects of trading.  I'm just an average joe.  Do your own DD!!  Good luck.
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