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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Frederick who wrote (12387)	4/28/1998 5:22:00 PM
From: Henry Volquardsen	Read Replies (2) \| Respond to of 20681

Tom, I have a one time exemption to post this and then I am back to the Phantom Zone ;) I agree the stock was never worth $10. I have posted several times over the last weeks that I thought the current valuation was still to high based on one hole's worth of data. This is not to say I believe the price will fall but that we will need some additional data to fill out our valuation. It is also possible, in my mind, that the stock will be technically over valued for the foreseeable future based on people willing to buy based on the enormous potential of Franklin Lake. I continue to have a high degree of confidence that the company is currently on a very positive track. But I strongly maintain that the current valuation in excess of $100 million for a mine with only a couple of holes worth of data is too high. When the stock was trading at $10 it was doing so only because of enormous hype. I use the word hype guardedly because I realize that many will interpret the use of that word to indicate I believe there were nefarious motives involved. That is not necessarily the case, it is quite possible the hype was the result of over enthusiastic investors who believed wet dreams of $1000+ share prices. I have repeatedly argued that there was a need to plug the leaks and stop the silly speculation of enormous numbers before they were proven. That has happened but the result is to let the air out of the hype balloon and bring the stock closer to realistic valuations. Where does that leave us? I have argued we needed more serious mining professionals in charge of testing. We have seen that be put in place over the past month and I believe we will start seeing significant results from this. The company is taking a very sound approach to proving out Franklin Lake as a conventional deposit capable of low cost production. This will take time but I believe will bear enormous dividends in the future. Many have speculated on getting a big name investor involved to give Naxos credibility. IMHO that will never happen until we prove this out in the manner the company is now pursuing. Many of us have been involved in this stock for a long time, myself included. I am constantly re-evaluating my decision making process. As I have posted in the past it is clear to me that when I first got involved over a year ago that I was making a mistake, Naxos as then configured was not going to realize its potential. It is only over the last few months that Naxos has started to move in the direction of becoming a serious mining concern. The angst many of feel is a continuing hangover from the years of, perhaps well-intentioned, hype. This will gradually dissipate. As I write this I am more comfortable with Naxos as an investment than I have been for a long time. It is still very high risk but the right steps are finally being taken. Well that's all for the time being. I am back to the Phantom Zone where I will be dependant on the kindness of strangers, a very strange ranger indeed ;) Hopefully I won't be gone to long. Henry