The latest financial hiccup has delayed what I thought would be an early start to the fall rally. Gold has withstood a serious blow with the upping of margin requirements on the metal. When that was done to silver it dropped like a stone. The conspiracy theorist in me believes there are still attacks on gold but it recovers in Asia overnight.

As I look at the venture market we have had several good days of gains irrespective of the goings on in the wider financial world. Many stocks are clawing back losses from last week but the best ones are already at or near their highs set only a week or so ago. I truly believe we are seeing the beginnings of a very large bull market for junior golds, one I have been expecting for years!

Newstrike Capital is one of those that set a new “everhigh” (for those that remember the MARS quote system (dating myself here a bit)) the day before the latest global drama began.

The quality stocks that were able to maintain their standing will surely be the ones first out of the gate and attain lofty valuations.

Newstrike Capital is our best performer to date and continues to impress on several fronts. Management has always got shareholder interest at heart, since they have skin in the game. The geologic and technical team has figured out Ana Paula and is hot on the heels of a massive deposit of significant grade!

We look at 3 criteria when assessing companies to invest in. The first is management, I can assure you Newstrike management is second to none, they have years of experience doing the very work they are doing now in the exact environment that is proving to be so rich, benefiting us all. The property is second, since a so so management can really screw up even a great property. Ana Paula is a top notch property and since we have explored only a small patch the potential for more discoveries is massive. Our third criteria is share structure. We like to see that the float is controlled and that management, insiders and “friendly hands” have significant holdings. The shareholder base of NES is very loyal and there are significant shareholders, not the least of which is Lukas Lundin with a majority stake.

In short given the strength of NES in the last week we feel it will outperform in the upcoming fall rally and beyond!

“caliche likes Newstrike”

warmest regards

caliche

August 12th, 2011
Categories: Uncategorized . Author: caliche