" Evolving Gold: The Post-Grandich Era
COMMENTARY– ProspectingJournal.com (click for original article) – December 1,2010 – Sometimes you can only take so much, when it comes to sitting andwaiting for a stock you're holding to take flight to the heights youenvisioned when you first bought it. For everyone, there's a limit, andwhen you've hit it, whether it be a personal limit or a price limit, yougotta go with your gut. And today, on his website Grandich.com,esteemed investment blogger Peter Grandich announced that he had hit hispersonal limit with Evolving Gold Corp. [EVG – TSX.V], a company thatstrangely enough opened the morning announcing very positive drillingresults.
But, we've all heard the saying “It's not personal, it'sjust business,” before at some point of our lives. Grandich, on theother hand, stressed the opposite, stating:
"There’s no questionEVG has two outstanding potential world-class projects and today’s newsfurther demonstrates that on one front. However, EVG has been like aball and chain to me as family, friends and followers have owned it andbecame quite “emotional” during the darker days. I truly don’t wish tohave to deal with their frustrations on a daily basis anymore.”
Now,we recently covered Evolving Gold in October, interviewing Presidentand Chief Geologist Quinton Hennigh the morning after results on drillholes 126 and 128 were released, and just as now with the results onholes RSC-132 and RSC-135, the story remains worth following. It's alsounderstandable how emotional the stock has been for Grandich, due to hisaddition of the stock at $1.40 to his tracking list. He'd since gone inat different points, even catching it when it was down, but again, itneeds to be stressed that there were other reasons behind his decision.
Thingscan change rather quickly in this investment world. Not quite two weeksago, the stock had won his love again, with his Grandich ClientEvolving Gold – It's Alive! posting. Through this entry, Mr. Grandichhad seen the potential in what the stock was doing, even playfullycommenting with his stock charts, “A weekly close above $1.25 would IMHObe a major technical achievement. A guy can dream you know-lol.”
Sometimesdreams can come true, albeit perhaps at the wrong time. As the tradingday played out today, the stock flirted above that $1.25 level, hittinghighs of $1.28 and $1.27 on more than a few occasions during the morningtrading hours. The stock floated lightly back down to close at $1.16,but the fact remains that the potential Grandich wished for did in factshow itself, if even for a glimpse.
For those that are stickingwith the stock outside of the Grandich announcement, the fact remainsthat the company has shown potential, and does so for the same reasonsthat Grandich got into it for. Two great properties, showing gold trendswith open-pitable potential for the future. Gold went up again todayfor the third day in a row, and that never hurts the potential for whenthe mining commences. Every company has to start somewhere, and its notlike the Evolving Gold story doesn't mimic other success stories fromthe past.
Hopping in our time machine back to February 2009,Ventana Gold Corp. [VEN – TSX] was in the same league as Evolving Gold,hovering in the $1.00-$1.50 region, before positive announcements of itsLa Mascota drill results shot the price up to $4.44 within a week,during June. Too some, that may have been enough, and for their ownpersonal reasons would've gotten out at that stage, but after holding onat that rate for a few months until October, La Mascota news bumped itagain to $8.60, and further to $12 by mid November. That said, a lot canchange when it comes to outlooks on stocks, dependant upon when you getin. Ventana dropped back down to $6.44 at a point this summer, whicheven now looks like a great price to have gotten in, since the stock iscurrently trading above $13.
These stories happen all the time.Rainy River Resource Ltd. [RR – TSX.V] is another, which spent most of2009 between $1-$2.25 before closing 2009 off at $4. Standing tall andnearing the $13 mark, RR has come a long way from its post-2008-crashlowpoint of
.67. Its story currently swirls around 2.18g/t over 298m, whereas Evolving Gold's is 1.31g/t over 405m.
Another is East Asia Minerals Corp. [EAS – TSX.V], which bounced away from its 2009 opening of
.21to $4.40 at the same time to open 2010. Even though it spent most of2010 in the $1-$2.50 range, EAS made its projects' stories count, andits shareholders reap the reward of $7.39 a share today. What matters iswhen does the story take hold and captivate the audience it needs.
Aftertoday, Evolving Gold may have to go on without the help of PeterGrandich's coverage, but given the popularity of its story in theaftermath, it may not need the extra coverage. Whether his decision toget out was the right one at the right time remains to be seen, butreading his insights over the company will surely be missed by us in hisreadership that refuse to let go.
G. Joel Chury
Editor in Chief
ProspectingJournal.com" |
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