"The current price is simply nuts" - Moriarty today
stunning, from Bob Moriarty today - never read a more bullish write-up on a jr gold miner:
Just today I talked with the management and the technical teams at Cayden Resources Inc. (CYD:TSX.V; CDKNF:NASDAQ). When I wrote about the company in May, the stock price was $0.72. It's around $1.65 today. The stock was cheap at $0.72 and it's cheap today. This could be a $30 stock. It's an extraordinary opportunity.
"Lately, I'm seeing so many bright companies that are so absurdly cheap. It's a wonderful opportunity for investors."
Cayden has two homeruns. One is Morelos Sur, a project in the Guerrero Gold Belt, in between two gold mines owned by Goldcorp Inc. (G:TSX; GG:NYSE). Unless Goldcorp buys the Cayden project, it will lose 2–3 million ounces (2–3 Moz) of gold. It's only a question of how much Goldcorp will pay for it. I used to believe it would be $42 million ($42M). Now, it looks as if it will be $100–200M, depending on the price of gold. As of today, Cayden has a total market cap of $70M and an enterprise value of $55M. Yet it could get a check from Goldcorp for $2.50 to $5 a share. The current price is simply nuts.
Cayden also has a project in Jalisco that had been mined before, El Barqueño. The company just started drilling and I think the results will be extraordinary. In May, I predicted it would be a 5 Moz project. I now believe this will be a whole new district.
TGR: Cayden just filed an updated technical report on the Morelos Sur and El Barqueño projects. Did that give you the results you were hoping for?
BM: No, because the technical reports were technical in nature. They didn't address the resource. What the reports said was true, but it's not meaningful. When Cayden releases drill results in mid-October, I expect intercepts of 70–100 meters (70–100m) of 3+ grams per ton (3+ g/t) material.
A lot of majors are looking at Cayden right now. This will be one of the major successes of 2013.
https://www.theaureport.com/pub/na/bob-moriarty-ignore-the-noise-and-profit-from-golds-volatility