I’m being asked a lot (just from my wife) about two Grandich clients this morning:
- Silver Quest Resources – First off, I bought 75,000 more shares yesterday up to $.71 so trust me, I had no prior knowledge of the private placement announced after the close. Normally, one could have some short-term concerns about the share price staying around here until pp closes as the assumption would be some people will sell their current holdings down to the pp price, and buy into the pp and get the half warrant for leverage.
I’m not concern about that in this case for a few reasons:
1 - Bayfront Capitalis quickly becoming a force to be reckon with in the junior resourcemarket. It’s my understanding SQI’s CEO Randy Turner spent three dayswith them visiting clients of theirs last week. I suspect this was agathering of interest tour and this pp won’t stay open very long.
2 – Under the above assumption, I don’t anticipate a lot of retailand old shareholders participating and therefore the sell old shares fornew pp is not likely going to happen. I do think some retail investorswill think this way and will use this as an excuse to take someprofits. That’s okay in my book and quite healthy for the future.
3 – There should be “tons” of news from multiple projects for severalmonths to come. News from the Yukon on other projects continues to bevery good and any initial good results for SQI can have a major positiveimpact on the share price.
The hiring of a full-time IR person is also a sign that SQI is preparing to expand it’s horizon in the world investment community.
With 7 figures worth of stock at the moment and SQI a client, I’m extremely biased so do your own due diligence.
Continental Minerals - ...