Dear Readers,
ZEN/ZENYF hit another new high today and released more good news:
http://clicks.aweber.com/y/ct/?l=N8WNw&m=3a5ycyLzcHfp9XB&b=UxB3TFXxpc9LfBn0DR2Uwg
This is essentially confirming to the street that this anomaly is DEEP and
will likely have depth that's further than is even necessary. Meaning,
there is only so much high purity natural graphite Zenyatta can produce
and sell in a given year before affecting global market prices adversely.
Still, it will be nice to prove out more tonnage at depth simply for a
larger company to justify a significant price tag if/when we see a bid
for Zen. Life of mine at Albany will be ridiculous by the time the drilling
is said and done.
It is clear we will have days in the not-too-distant future where Zen will
have days where it trades up 50-75 cents and even $1 plus as the price rises.
For shares we own at 20-50 cents, those will be very profitable days as a
50 cent raise on a $5 stock is only a 10% move, which is not uncommon for
junior resource stocks. But, those will be 100% increases for investors who
bought at 50 cents not that long ago. So, when do you sell??
Well, I've talked about my strategy and price targets very consistently.
We put a 12 month $5-7 price target(raised from $2-5) back in February and
a $10 "within 24 months". I try to be conservative with timing even though
these have been aggressive calls and its nice to see the targets taken out
earlier than later. I'm sticking with those price targets for now, although
it's increasingly likely we'll see the $5-7 range before year end instead of
Q2 2014. I say this because there are still significant catalysts/benchmarks
forthcoming for Zenyatta.
The 43-101 in September will bring a whole new group of institutional
investors to the table. Plenty of the "big money" prefers to pay up but
have this data in hand versus speculate too early. Plus, many more funds
can get involved once we are a $5 stock, which is a minimum share price
allowed to buy for many bigger mutual/hedge funds. Retail investors rarely
move stocks in a big way, it's institutions that take stocks significantly
higher. There is internal testing of various aspects of our hydrothermal
graphite by Zen before sending samples off to 3rd parties as well.
Positive news/confirmation from this data could prove to be another catalyst
beyond drilling results and resource estimates. We're also seeing the drill rigs
moved to the "west" anomaly, much bigger than the size of the east. This
could create additional enthusiasm in the market as folks catch onto the material
expansion of the high purity graphite deposit at Albany. All of these factors
should continue to drive new investor interest in Zenyatta which will continue
to drastically outperform its peers.
Best,
Eric Muschinski
PS he is also pumping MDL ree play with not much today so i would not touch mdl by selling a few zen shares for mdl sorry Eric |
