Goldstrike Resources (TSX-V: GSR) Market Review and Quick Peer Pricing Comparison

There has never, ever been any correlation between the price of Gold and Gold Junior Exploration Stocks.  That’s a fantasy cooked up by newsletter writers to sell subscriptions on the stocks they promote.  If anyone ever discovers the secret formula whereby Gold price predicts the price of Junior Gold Exploration stocks, please share it with us all. 

Nah, I didn’t think so…

Moving out of the realm of fantasy, into the world of facts, let’s compare GoldStrike to the highly-touted and highly promoted big-name Yukon exploration stocks:

·        Ryan Gold, (RYG) last financed @ $2.00 yesterday $1.00, down 50%

·        Smash Minerals (SSH) last financed @ $1.60 yesterday .60, down 62%

·        Atac (ATC) last financed @ $ 7.50 yesterday $4.20, down 44%

·        Golden Predator (GPR) last financed @ .90 yesterday .77. down 14%

·        Strategic Metals (SMD) last financed @ $3.25 yesterday $1.38, down 58%

·        Kaminak (KAM) last financed @ $3.60 yesterday $2.79, down 23%

Gold 30 day from $1920 to $1537, down 20%

Goldstrike Resources (GSR) last financed at .30, yesterday .47, up 57%

Compare GSR with any of the Yukon Junior Gold Stocks in your portfolio and you will see the same relationship.  GSR is above its last financings by a significant margin.    

The biggest and smallest names in the game have taken a pounding since their last financings, while GSR is decidedly up.  This is just one of the many benefits of a tightly-held stock.

GSR has done first past work on 24 projects and turned up three significant discoveries that will be attacked by drills in short order.  They have samples in the labs pending.

This story is extremely well financed and run on the leanest, meanest budget in the Yukon.  GSR is only getting started. 

Management has decades of experience in the Yukon and members of the team generated the overwhelming majority of significant discoveries in the Yukon in the past decade, one of the most notable is Coffee Creek.  In fact, of all the Yukon projects generated by GSR’s team, 60% of them have developed into current discoveries, with 14 projects still actively under exploration and development (!)

GSR’s Geologist, Trevor Bremner was the Yukon Government’s Chief Geologist for nearly a decade, and was Acting Director of Mineral Resources.  He spent nearly a decade with Archer Cathro (ATAC).  Their prospector, Tom Morgan, was Yukon Prospector of the Year, 2004.   Dr. Larry Dick is well known for several major discoveries that have become producing mines, in a number of different settings, and his PHd work was based on the Nisling Range, which is now the Yukon’s White Gold Camp.

All of GSR’s targets are the results of years of painstaking scientific work and are entirely target specific.  Take a look and see how the properties are laid out on the Yukon North Map and here to see the properties on the Yukon South Map.  Notice how a number of GSR’s properties were later entirely surrounded by or staked adjacent by some of the biggest names in the Yukon?  Everyone deep in the business has read the minfiles over the past decade+ and knows what the people who have taken over GSR have done over the past decade, and will do next. 

All one needs to do is check the minfiles, maps, and do a peer market comparison to see which Yukon Gold company should be bought and not sold.  And based on the bullet point peer comparison I have listed above, it appears that the most sophisticated investors agree with me. 

I first looked at GSR back around .10 cents in 2010 before the takeover / management changes began, and published my picks at .25.  I saw a very strong run since that time and there were a number of points by which I could have sold this stock and made significant multiples, but chose not to.  You see, I am only interested in trades which return six figures or multiples of such, and to me GSR is not a paper play.  This company is still in its near infancy with significant news pending and management changes ongoing.  Literally, it is just emerging from its “shell”. 

So far they have keyed into three new discoveries with results pending, and I expect big things.  So big, in fact, that I am now staking my personal reputation on this stock as a top pick. 

Many of you who follow my portfolio, posts and blog will see that until just recently I was in the Stockhouse top 10, with an overall rating of 5, based on stocks I had picked within the last year, much of which has been bearish.  We all also know that this board is the home of many professional stock promoters who have made great picks in the past, but few in recent memory, and their numbers and reputation rest on what they did years ago.  I’ve even seen some a number of Stockhouse top 5 peers heavily promote falling dog stocks over the past year and then orphan these picks, remove them from the portfolio, and never mention them again, just to keep their top rankings intact and not allow a few bad picks to drag down their ratings.  You see for them, it is more important to maintain a rating of 6 or 5 than it is to learn about a company and have conviction and faith in their decisions when times get tough. 

Well, you aren’t going to get that from me.  As of yesterday I reset my price point on GSR and Petro One Energy (TSX-V: POP) effectively wiping out hundreds of % gain and reducing my overall score to a 4.  Yes, I am now out of the top 10.  I took a voluntary demotion and changed the pricing on these two issues in my portfolio for two major reasons:  To accurately reflect overall purchase entry point, and most importantly, because I am supremely confident that both GSR and POP will give me hundreds of % increase over the coming months and years. 

While everyone is selling, I am reiterating my personal buys on both these issues, and anyone who wants to investigate my track record can just go back and read my posts and blogs since last year.  They are also broadcast via Twitter (nearly 5,000 followers) and also Facebook (462 friends) so you can see what I am saying is entirely public and I will stand behind it. 

I don’t know where the market will go from here, but everyone knows where I stand on these two companies.  I am confident these two issues will soon snap me back into the Stockhouse top 10, and if you’re as convinced as I am, Today is EOM with EOM pricing, and as I always say, Fortune Favors the Bold.

James Hudson, AlphaFlight Portfolios Inc.