Deadlock's dose of reality wed night Danny Deadlock at Microcap.com posted some excellent insight here Wednesday night and offered up a reality check that suggested the stock was fully valued if one assumed they had even 1 million ounces of gold. And in my opinion that was being optimistic at this early stage. He also warned about the 20 million cheap warrants that would create a giant headwind. I noticed his feedback on this board was that he had no idea what he was talking about.
Those same rocket scientists were calling for this to close at 50 or 60 cents today and maybe higher. How is that working out for you ? Those people continually posted the same nonsense of grandstanding without any logic behind their forecasts. And in doing so likely suckered several people into this Thursday morning near 40 cents. Congratulations fellows, you just helped fuel some big losses for them.
The same ones selling into that buying likely listened to what Deadlock had to say and thought it made sense to take some gains and realized that maybe this thing did approach fair value within 24 hours when most other very good gold stocks looked like garbage. So what made this one so magically special ?
And for the genius that keeps comparing this to Goldquest - GQC. Give your head a shake ! I bought GQC May 23rd at 25 cents and recently took most of that gain near $1 on the July 18th news release. Not because I don't like the company, but because it was news that generated buying and I am not so stupid as to leave all my money on the table.
GQC had the big run because they drilled 230 metres of 2.4 g/t and followed it up July 13th with something less great. You are trying to compare apples to oranges in a feeble attempt to sucker more people into overpaying for a stock that attracted traders. Nothing more.
This stock is on day 2 with dying volume. Friday volume will die off more. Next week if they don't announce a big hole, look for mid twenties. If they announce something big in the next month it will run again and test this 40 cents with a giant wall. But you better hope they hit something big because otherwise you have a LOT of 15 cent warrants that will be happy to take a 50 to 75 percent gain in the mid twenties.
Don't kid yourself. And don't try to kid other people ! I have subscribed to Deadlock's newsletter for years. Made some awesome money and lost some along the way. But it irritates me to no end to to see people bash one person for offering a dose of reality while at the same time standing on their soap box trying to sucker people into overpaying for a stock based upon nothing but pipe dreams.
This company or any other one can just as easily miss on the next ten holes because this is geology and you are trying to find the needle in the haystack. And to do so, will take millions more and many months. More months than most people want to sit around and wait for.
We are not in the midst of a gold sector boom. We are at the bottom of a mess and have been all year. Buyers will soon run out and be onto the next symbol with momentum. For all those people that paid in the thirties, they better hope the next hole or two are great because otherwise they can kiss the thirties good bye. This buying may have been great initially. But now it is one GIANT wall of resistance.