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Evolve Canadian Aggregate Bond Enhanced Yld Fd ETF V.AGG


Primary Symbol: T.AGG



TSX:AGG - Post by User

Comment by jdn55on Sep 09, 2015 1:48pm
54 Views
Post# 24089739

RE:RE:RE:RE:RE:RE:RE:RE:RE:New PP

RE:RE:RE:RE:RE:RE:RE:RE:RE:New PPRaz says "why isn't anyone interested in agg if it's such a good deal?" I'll be repeating myself here for the most part but will try answer again. IMO there are a lot of reasons AGG is in the dumpsters. #1 reason is the market for junior gold stocks started a big decline in 2011 and has been absolutely dismal for the last 18 months, the worst I've seen in 35+ years of investing and there have been some bad times over that period. The North American market fro juniors is broken. This not just about AGG. #2 is Kobada is a unique deposit and is still a "show me" story. Detractors, and there are many like Treetop and GD, just don't believe Kobada can be put into production at low CAPEX/OPEX despite the ample available 3rd party verified data that supports the mining method and coarse gold effect. #3 is the threat of massive dilution to get Kobada into production is still very real. IMO this is probably the next biggest reason for a poor SP after general market conditions. Based on the scuttlebutt I hear I don't believe massive dilution will happen and have made my bet accordingly but I am fully aware I may be wrong and accept that risk. For the majority that risk is too high at present. #4 relates to a poor PR/IR strategy which is management related. Management has, for the most part, been old school in promoting the AGG story. They make the rounds to the Bay St and Howe St retail brokers that have all had the sh!te absolutely kicked out of them in the last 4 years. Many have lost huge money for themselves and clients. IMO there are still untapped retail investors who will take a punt who have never dealt with a broker but you have to reach that audience a different way. You have to have a well planned, PR strategy that gets AGG in the industry related relatively new internet based news media like Mineweb, Seeking Alpha (which I personally don't like because any moron can write an article for them), Stockhouse etc. etc. There are lots of them out there with a resource focus. They also need to get in more press in conventional publications like the Northern Miner (AGG has been written up in NM before) and get some of the established independent analysts and brokerage analysts covering you. The problem is a well planned PR campaign is typically put together by professionals and will probably cost you anywhere from $75K - $150K, money AGG can't afford to spend at present. Anyhow you have to develop a strategy to inform prospective new investors about AGG and get them interested. With all that said AGG does now have a fully permitted property with Kobada, a NPV north of $100MM based on the latest PEA and a full FS immediately pending (I know they are late on the FS but there are several justifiable reasons why which I won't re-iterate again). Kobada also has huge blue sky potential. Despite want the detractors say the fact is Zone 1 is wide open and there are known, drill verified satellite zones with economic mineralization. IMO Kobada, at an absolute bare minimum is worth 10 cents a share. I don't see any downside here and the upside is tremendous as long as POG doesn't go under $1000 oz. Realistically it may still take 2 - 3 years to realize the full upside but it will only take a few months to understand what that upside potential may actually be IMO. GLTA
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