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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (31021)	9/30/2004 4:05:26 PM
From: seventh_son	Read Replies (4) \| Respond to of 39344

I've got some thoughts. As you remember, Novagold was added to the S&P TSX index and TSX gold index September 17th. In the weeks prior to that, the volume on the stock increased enormously, and I think that it's a fair assumption that index funds were forced to buy it in large quantities during that period, and perhaps a bit afterwards. With that buying now gone, I think that it will be natural course for the stock to fall back to a lower equilibrium price. Novagold has long made the statement in presentations that their market cap based on their stage of development for projects was low, but with recent share dilution and share price increases they can no longer make that case -- it appears that something close to $7 Cdn / $6.50 US is a reasonable price for the stock, although gold price increases and news at Galore Creek may change that.