it is all about valuationI commented about this some time ago. The only company in New Foundland that is cheap
based on the work that they have done is Sokoman. When you have New Found Gold trading
at a 600 million dollar valuation and as exciting as their project is, you need to do valuations.
Tudor who just estimated resources at 19 million ounces of gold is trading at a valuation of 500
million dollars. One would argue that New Found Gold has a very very very long way to go to
prove up resources like that. I think what they have is exceptional but to value the company
at 600 million dollars today with the work they have done is extremely overvalued. Sokoman
trading at a fraction in terms of valuation with the work they have done and the results they
are getting is the only one in the district that is undervalued in my opinion. Even K9 has a very
rich valuation for a company that has not even drilled a hole. New Found in my opinion will make
lots of money for the shareholders like Pallisades and Sprott who had the company when it was
private. They took the company public and the money they made basically gave them a risk free
way to pursue the project having passed the risk to the shareholders who came on board. I think
the ones who got in at $1.50 certainly are happy and one could argue that is more the fair price
for this company. At current valuations New Found seems out of whack where Sokoman
seems like an absolute steal. No brainer if you ask me.