Re: What happened to this stock?
in response to
by
posted on
Jan 27, 2008 12:17PM
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
Well thats totally up to you but if I had more cash for investing I'd be putting it into KXL. Right now is a bit of a delicate time to buy(with the markets being volatile) but if you keep an eye on the situation and pick an entry point I think you could average down nicely.
There are a lot of juniors out there with massive potential but what sets KXL apart is the management and the cash in the bank (and of course the other points I mentioned earlier).
Most juniors don't have the same business/financial connections that KXL and the Richardson's have. Since Kodiak has so much cash now there isn't a risk of being diluted further and we can keep swinging at the fences until we're successful. Hercules is already shaping up to be a monster and with every drill it seems like the risk keeps decreasing.
There is always going to be risk with exploration so you want a company that tries to mitgate risk as much as possible. KXL has already proven that they're exploring Hercules in a systematic and cost effective manor.
They aren't looking for the shiniest piece of rock and drilling into it to please the public and pump up the share price.
For the record the term "Pump and Dump" is usually used in the context of corruption.
Meaning the company deceives the market and presents results that give the impression the find is much larger that it actually is. All the while the insiders dump their shares on the increased share price and leave the public holding the bag.
OR paid pumpers(sometimes paid by the mafia) flood the market with emails, stockboard posts etc. with false information of an "incredible story" and they lure people into buying a worthless stock. Then they make boatloads of cash unloading their shares to the masses. A lot of the time these companies don't have a website or they have a very basic website riddled with lies that confirm the false information. That is my understanding of how that all works anyway.
So as far as KXL being "Pumped and Dumped", definately not. I think you may have just got in at an unfortunate time. As I said, the public wasn't overly excited about the last NR for various reasons. However I don't think we would have dropped below $3 if the market didn't look like it was crashing at the same time. It just compounded the issue IMO. The next few weeks are a good time to take advantage of all instability because KXL will recover and possibly surpass previous highs within 1-3 months anyway I'm sure.
Even if you think of it in terms of 1 year. If you're worried, ask yourself this:
Within the next year and 60000 metres of drilling will KXL have 1-2 NRs that the public will flip over and drive the price over $5-6?
Its almost gauranteed to happen from everything we've seen. If your feeling is "yes it will", I wouldn't concern myself with the short term volitilaty unless you need the money right away.
Just my thoughts on the whole deal. I definitely don't have all the answers but I have read every NR and piece of KXL info in the past 2 1/2 years and they're in a better position now than they've ever been.
Hopefully some of that will help you out. I know my argument is a "little" biased but if you spend a chunk of time going through the KXL website I think you'd come to the same conclusion. http://www.kodiakexp.com
JMHO.
Cheers
Gamblor.