...and then the (lifted from elsewhere) PDAC is the biggest shindig for the type of resource stocks I specialize in, so it’s a great way for me to rip through some extra due diligence on scores of them. The companies know this too, so they tend to flood the market with press releases. Some will save up news to report it during PDAC, others will rush news to do the same. Some of this news is highly material, like a new discovery, or a new feasibility study. But plenty of it is little better than reporting a new water cooler in the office, just to get some attention. I’m here to help my readers sort the signal from the noise.
All this frenetic activity has an interesting side effect known as the PDAC Curse.
With companies getting all the news possible out during the show, there follows a quiet period, exacerbated by the wind-down of northern hemisphere winter drilling. It will be months before winter drill results are published and summer drilling starts. In this quiet period, share prices tend to slump. Hopeful gains can turn into painful losses as investors get bored and start selling. That’s why they call it the PDAC Curse.