Keeping the board good So to all my fellow investors. I was thinking we are all impatient and can't wait for PEA and metal results, be they drilling, or Rhodium samples. While we are all waiting we have two choices,
1. Sell (or short)
2. Buy (or hold) or buy more.
What are the advantages to being out of this stock? When the PEA comes out I could see a "sell the news" reaction. I could also see the PEA being disapointing and bringing down the company's price. But if we look at where the stock has been until the 4101 I would say that our market cap, in a normal market, which we are not even close to, would still be close to what it is now.
Selling, the advantages are that you could see what the PEA looks like, and if it is good you could hope the intitial reaction is to sell the news and get in close to our current levels on price. Also if the PEA sucks then you would feel pretty smart. Shorting the stock is a good idea if you think that it's all hype and the price is overblown based on a 4101 that says open pit but means underground...
I am buying more on the dips, via UMJ at 10.5 on friday. I moved out of WRN which has a similiar market cap but has a much less valuable ore but a bigger resource at lower grade. I like the grade of the ore, whats in the ore, where the ore is, who owns the ore, and what the prospects are for the future.
This deposit, if it's open pittable should sell for 1 billion right now, or 20 bucks a share, in a normal market. I base that value on Mt Milligan getting bought for 450 million dollars-6 billion lbs copper and 4 million ounces of gold. And Blackwater NGD from RVC that was bought for 500 million whith 8 million ounces of 1g/t gold. Since we have a larger resource, and much better grade than either of these projects I think we are good to go.
Disclaimer- I own a lot of nkl and I think the 1 billion take out price is after a PFS derisks, although RVC was taken out long before the whole story was done. I also believe the whole market is a mess right now when it comes to juniors, and though volatile may have some downside yet. With patience i am sure the upside is much larger than the downsde.
Good luck y'all!