Penbar Capital Ltd V.PEM

Regarding expectations..

[Rockysweden]

I am with meritmat and bullrush, good posts guys. There is nothing like a shure thing in this business. Everybody seems very pumped up on Buffalo gulch at the moment but please relax guys. Nothing is so devastating for a stock price as too big expectations.

There is plenty of cases of stocks crashing on too big expectations. I can give two more examples beside the one meritmat told us about.

ATAC resources (v.atc) last year published a press release about a new finding, a gossan called Ocelot containing rocks with high-grade silver as well as indium. Everybody were pumped up and it was a shure thing etc. Nothing in the first drill cores... (but they will drill more holes there 2011). ATACs gold finding on Osiris were almost the same thing. The first hole was a killer so of course everyone were extremely pumped up. But the second release caused ATAC stock to crash 30% on 30/11 last year. It should be mentioned that the stock crashed although they made 2 additional gold findings (conrad and eaton). 

Another example from a great book I read a few months ago, "the big score" that describes Diamond fields nickel finding in Voisey´s bay, Labrador. They drilled a gossan that had a strange color and found plenty of nickel. Everybody were extremely pumped up but the next eight drill holes (if i remember it correctly) were totally empty. I think it was the ninth or tenth hole that drilled through metal almost the full length of the drill hole. They described that hole like drilling through a motor block, almost complete metal.

The diamond fields story is a good example,  we might miss the first holes on Buffalo gulch or Deadwood but the gold might still be there.