Last Updated – September 14, 2023 (added article about warning to Canadian day traders)
Doubleview Gold’s Potential After it Attracts the Market’s Attention
Warning to “FLIPPING” Shareholders
Although I have been wrong on previous warnings to “flipping” shareholders, I believe this time I will be right due to the known pending catalysts (hindsight will prove if I’m correct this time).
When it comes to stocks, past performance is NOT a predictor of the near-term/intermediate-term price movement as there are too many variables which determine the trajectory of its price. In a nutshell, the market’s opinion of a junior miner’s news release is what determines what will happen and each news release can instantly reverse its current trend.
Due to Doubleview Gold’s trading pattern over the last few years, many shareholders have resorted to “flipping” the stock (selling it higher and rebuying it lower in an attempt to generate profit or increase the number of shares owned). Swing trading or “flipping” comes with a lot of risk as it might result in less shares than originally owned if the stock experiences enough buying pressure, FOMO (Fear Of Missing Out) occurs or a significant news release or event causes a huge jump in the share price.
One single catalyst (news release or event) can trigger a domino effect or a series of events which can potentially result in increases of 1100% to 5700% (possibly higher) in a short time frame as seen in the examples below!
As recently mentioned in a previous TSR article, Doubleview Gold currently has many known significant catalysts pending (link).
What Happens to Junior Mining Stocks After they get Discovered by the Market
When a junior mining stock catch’s the market’s attention, its stock price can quickly go from pennies to multiple dollars based on speculation that it might have something which becomes desirable to a major mining company and results in a big premium buyout offer.
There have been many recent examples of this occurring in the last few years. It is important to note that the examples below all occurred during a period when the junior mining sector was “dead” and some during a period when the valuations of major mining companies were at all time lows relative to the price of gold which was trading near its all time high for a while!
Recent Examples
Garibaldi Resources went from ~$0.20 to ~$5.25 in only a few months in 2017!
Emerita Resources went from ~$0.25 to ~$4.14 in only about 6 months in 2021!
Oroco Resources went from ~$0.25 to ~$3.66 in only about 12 months from 2020 to 2021!
Tudor Gold went from ~$0.38 to ~$4.51 in less than 5 months in 2020!
NGEx Minerals went from ~$0.61 to ~$7.35 in ~22 months from 2021-2023!
Although not a pennies to dollars example, Filo Mining used to be worth $0.27 on Sept 06, 2017.
Filo Mining went from ~$2 to ~$26.58 in 16 months from 2021-2022!
The saying is “what goes up, must come down.” Unfortunately, this is the case with most of the wild runs junior mining stocks experience. The only time a junior mining stock doesn’t come back down and loses most of its gains is when it’s bought out. This was the case with Great Bear Resources.
Great Bear Resources went from ~$0.50 to a buyout price of $29 in about 3.5 years from 2018 to early 2022!
Forward Looking Statements from the CEO
Farshad Shirvani (CEO/President of Doubleview Gold) has publicly said some very bold forward-looking statements which started at his pre-PDAC presentation.
As a reminder, here are a few important forward-looking quotes and statements that I published in some of my recent articles (refer to Doubleview Gold’s disclaimer as the following statements from the CEO contain some forward-looking information):
- “We have the opportunity to have low cost scandium in North America……very cost effective” & “we will have a report showing what the cost figure is to do do this metallurgy, to show to the world that this is the cheapest way of producing scandium” – Pre-PDAC Pres 03 March (video link)
- “It will be proven by the end of this year, all of a sudden to everyone, that this is the most unique deposit in the world…..I’m not saying in Canada or the United States….the most unique one in the world & you will see that how we’re going to expose it to the world to see it” – 27 March 2023 YouTube Video (link)
The following is a summary of some forward-looking statements the CEO said during my discussion with him on 08 Sept, 2023 (link):
- They’re working on proving that it potentially has the largest critical mineral discovery in Canada. If successful, he anticipates the governments of US and Canada will look at the company (both governments have been focusing on establishing a domestic critical metals supply chain for the Green Energy Transition).
- The deposit could potentially be one of the most valuable deposits in Canada.
Conclusion
It is my belief that with many known pending catalysts nearing completion, Doubleview Gold’s CEO/President’s bold forward-looking statements are very timely and based on a favorable mix of insight and gut feeling.
Although forward-looking statements need to be taken with a grain of salt and they provide a blanket of protection to publicly traded companies, abuse of such statements comes at a price. In a sector that is fueled by speculation, management plays a major role in attracting capital and creating speculation. Falsely screaming from the roof top with a bunch of bold forward-looking statements can prematurely end one’s career if the statements end up being completely wrong especially with publicly traded companies.
All the pieces of the puzzle have been publicly available in news releases and videos for people to deduct similar opinions as the CEO. My work has also been publicly spoon feeding the market for the last few years and well before the CEO began providing forward-looking statements.
Beating the unfavorable odds in the junior mining sector is rare. When one owns a junior that catches the market’s attention before getting acquired by a major mining company, the difference between financial freedom (or possibly setting one up for future financial freedom) and living with regret is simply how long one remained a shareholder of it (attaining financial freedom depends on an individual’s personal situation and depends on the number of shares and the average cost of the position).
It has been my belief for many years that Doubleview Gold will become one of the rare cases of a junior mining company beating unfavorable odds and consequently, providing life changing returns to some of its shareholders. I also believe Doubleview Gold’s current pending catalysts will attract the market’s attention and most importantly, the attention of potential buyers of its critical metals deposit.
Since this content pertains to publicly traded securities, consult a licensed investment advisor in one’s respective jurisdiction before making investment decisions.
In memory of Cheryl Anne Caulder …….may she rest in peace and her legacy remembered.
Cheryl was the long time partner of a long-term Doubleview Gold shareholder & TSR supporter
https://calgaryherald.remembering.ca/obituary/cheryl-caulder-1086498966
Warning to Canadian Day Traders
Please see the article following article link: