A repost from SH
New to the Board…but…most definitely not new to the story…I have been following this one for well over a year now.
I took an initial position today…11,800 shares @ $1.42.
I will look to add as the Junior Gold Sector along with the exploration success at the “Anna Paula Project” continues to improve!
Timing…I believe as others that there is most definitely an opportunity here to take advantage of the “smash” in the Sector and I have had Newstrike on my short list for sometime now. I was fortunate enough to make a significant pass in Trelawney (TRR) and I am slowly putting my “Trelawney Bucks” to work.
The positives for this stock are many and in my opinion the present stock price does not reflect true value…the risk reward is very high at this phase of the project and the exploration success moving forward will add to the present resources.
There are many catalysts that will positively affect the share price and the upside potential in regards to share price appreciation is signficant. The nice thing right now is that the selling has subsided and we are building a base…”things” are primed for a move upward!
I will watch this very closely and we cannot rule out the negative impact of the spot gold price moving further downward…it must hold in the present price range. All attempts to suppress the price of gold and move it on the downside has failed…the fundamentals and demand will take-over soon and it will be allowed to move more freely and trade accordingly…it will break to the upside. History has taught us that false intervention never works!
The Breccia Zone is most amazing and we must realize that the Newstrike Team has come a long way in justtwo years…quite the achievement! Just think what Goldcorp is thinking right now…they gave this property away in June, 2010 for 1.5 million dollars and 1,412,762 common shares.
The Lundin Family is involved in this play to the tune of about 13 Million Shares which represents about 12%of the outstanding shares…Nice! They have made purchases via two of their holding companies namely….Lorito Holdings & Zebra Holdings & Investments.
With about 38 Million in cash and no warrants outstanding the negative of further dilution is all but eliminated for the time being. Fully diluted we stand at 120 Million Shares very respectable for this phase of the exploration stage…allows for market liquidity and major investors to take part in the story.
Are we at the bottom? No one knows for sure…but…I can tell you one thing we are most likely closer to it….a very good buying opportunity to be sure!
It is always a lot easier to sit on the sidelines and do nothing….However, we must take advantage of opportunities that are presented to us and I believe this is one of them….”buy them when nobody wants them”….a lot of people have made big money using this strategy. It takes fortitude and resolve to press the buy button…Today I chose to do so once more.
Best of Luck to All!
P.S. The ongoing drilling programs will continue to add to resources and I look forward to future news releases…should be an exciting summer!
The markets have lulled most to sleep…time to wake up and do some buying in the Juniors with the goods…it does not have to be this one! My “gut” is telling me to continue buying!