fleztone (and others who are tossing in the towel)Why would you sell NGG at these low levels? The treee is obvioulsy being shaken at this point at its people like you who are turning over thier paper down here. HMMM - I thought the idea was to buy low and sell high???
Obviously most golds are terribly undervlaued this year - there has been a solid run-up in the price of gold yet a harsh sell off in the gold juniors resulting in some very compelling valuations. The market is obvioulsy saying that it does not expect gold to stay at these levels or that it sees a major meltdown on the horizon and let face it, its the juniors that get sold off first when these storm clouds are forming.
yet with New Guine, its by far and away the cheapest junior I know of - for freaks sake its trading below the value of its cash and marketable securites on hand, and it has a mine that is now making money. To boot, they have finally gotten rid of the old pres who was a nice guy, its just that he mismanaged Sinvit and ran the company into the ground. This company does have a rock star board of directors, all of whom can raise some serious cash and who can help garner some serious institutional investors. Take for example the director Mike Reynolds. He was a former elite power broker at Canancord and now he runs a resource based hedge fund in Zurich. Oh, and his kid brother Paul is now president of Cannacord as Paul took over when Peter Brown became stepped down. Also not ethat when Mike joined the board last Aug, Canaccord when into the market and cleaned up about 20 million sheets.
Also of importance is PNG gold since NGG and PNG are joined at the hips somewhat. PNG just raised $35 mil in these markets, and at 0.75 per share. This confirms the abilities of management to raise money which is very very important.
Anyhow, I have not seen a deal trading below cash since the meltdown of 2008, and all of those deals became 10 baggers. I am accumulating and since there are sellers who keep hitting the bids, why chase when I can simply stack my bids and let the frustrated come to me.
I value their cash and marketable securities at .11/share and I value Sinvit (Kavurski zone looking juicy at .25 from current operations and possbily at $1/00 per share on its potential.
Its one of those deals where I can tell you whats gonna happen, I just cant tell you when.
We'll comper notes in 6 months!
GLTAL
Jandd