Potential of ZEN for New Investors by GILA Past GIL
Gold Investment Letter – Eric Muchinsky quote on ZEN
Old Interview and Blog that is a good start for New Investors and refresh for the Longs.
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TGR: You have been championing Zenyatta Ventures for a while. But its stock slipped from $5 to $2/share. That is bad news for those who bought in at the high, is it not? Is it good news for investors looking to buy in at a low? What does Zenyatta have going for it in the graphite mining, copper and platinum space?
EM: I scoured the earth looking for stocks that could give us good returns last year when I thought the gold junior market had further to fall. I coined Zenyatta as my top pick in August 2012 when the stock was near $0.20/share. It utterly skyrocketed to $5 in less than a year.
Similar to what I mentioned with gold going up 12 years in a row and needing a breather, Zenyatta's pullback is healthy. There were too many Johnny-come-latelys piling into Zenyatta who heard about it from a friend and didn't understand its business. Now those investors are puking out in the $2s and I think it's a perfect time for investors to take a very serious look at it.
I've learned that a stock can go up 25-fold and people can still lose money! Seriously, it's a shame when investors write me that did see me recommending Zenyatta well under $1/share only to finally buy at $4 and then sell at $2.50 because they got freaked out. I was actually taking profits there but some people really do trade mainly on emotion and Zenyatta was rocking this past summer.
Zenyatta is just a couple of weeks away from releasing a maiden NI 43-101 on its very special Albany graphite deposit. This is the real deal. Zenyatta's graphite is a freak of nature and the company has a LOT of it. My report link above takes time to walk through some economics but I think a couple of impactful things will happen soon:
1. The NI 43-101 will allow some serious institutional money to buy shares; they have been on the sidelines until Zenyatta proved it has what it has said it has drilled. The stock is too heavily retail focused and institutions, not retail, take stocks from $2 to $10/share.
2. I think there's better than a 50/50 chance someone tries to buy Zenyatta before it releases the preliminary economic assessment (PEA) in Q1/14. What price? Who knows, but I've stated I would not entertain anything under $500 million ($500M) and that takes the stock to nearly $10/share. If I'm right, there's still a lot of room to get involved here. So, yes, I believe the recent retracement in the share price, which is very volatile, is a blessing for new people learning about the story here.
Full Interview Link
https://www.marketoracle.co.uk/Article43109.html
GIL Blog and work on Economics of Albany, 24 Oct 2013,
“Now, we’ve witnessed ZEN retrace roughly 50% from its 52 week high of $5. There has been a short attack with a case built on lies, propaganda, and outright malice. In addition, like no other company I’ve ever seen in my 20 year investing career, Zenyatta has been attacked in the press by competitors in its sector. When everyone hates you due to your success….you’ve done something right. I’m happy Zenyatta is seen as a threat to many flake graphite companies…..because it is; and their attacks in and of themselves should tell you something about the validity of that threat.” Eric
https://www.goldinvestmentletter.com/zenyattas-potential/
Eric’s latest ZEN Prediction, 16 June 2014, would work for me too, quote,
“I don’t claim to know how far down the supply chain Tesla wants to go in terms of acquisitions. But, my personal guess is that if they plan on sourcing their synthetic/high purity graphite in North America, they will buy a bunch of it from Zenyatta. Where else are they going to get their synthetic caliber supply?? Flake deposits are everywhere but Zenyatta’s Albany graphite is exceptionally unique and I’m not a chemical engineer but I’m guessing odds are better than 50/50 that ZEN does a deal with Tesla in the next 12 months. I’m not convinced the stock will take off right after the PEA is out but by this fall/winter I see things heating up considerably for Zenyatta’s stock.”
Cheers, Mark