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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (201356)	5/8/2009 4:35:47 PM
From: patron_anejo_por_favor	Respond to of 306849

There are 3 main reasons why NGD is still that far off it's peak: 1) Due to the credit market collapse, access to funding dried up in mid 2008, which caused them to announce a delay in development of their highly promising New Afton property. They subsequently did get funding, but lost some time, maybe 6 months overall in the process. 2) Juniors have been beaten disproportionately in the miner downturn, not just in gold miners, but in all resource stocks. They are more volatile, and funding issues can completely destroy their business models (see 1). So that effect was important for NGD. 3) The announced merger with WGW which should be finalized by the end of May has held them back more recently. I still expect them to hit 4 (maybe 5) by the end of 2009, and 20 by the end of 2010. After that, who knows, but they'll do well in any environment where copper and gold prices are strong. All IMHO, I'm long shares of WGW (which will almost certainly become NGD in a few weeks).