Robert Cohen B.A.Sc., MBA, CFA
Gold Eagle Mines Ltd.
GEA-T
BUY
Nov 16, 2007
Directly adjacent to Goldcorp’s mine (G-T) in Red Lake and have 5 drills working this site. There is a potential to expand the deposit. Very good hold long-term.
A fantastic gold exploration play. They think they have 8 to 10 million ounces of gold however; it's a long way until they actually produce these ounces. The stock has gotten ahead of itself.
A downtrend, when the market is going up. Stock has dropped too far, it will have a little bounce, which is what it's doing now.
A stock needs a little time before going up, otherwise it's just bouncing around which is good for day traders but not for most investors.
Have very good analogues to the Red Lake Camp for Goldcorp (G-T). Thinks that gold stocks overall are going to be pulling back for the next 3 to 6 months so there may be some weakness.
Possible acquisition by Goldcorp (G-T). Really interesting story. Right next to the Red Lake gold camp that Goldcorp owns and it looks like it is the extension of the high-grade zone. Incredibly deep and the land is under water so they've had a hard time drilling. Will need more time.