Hi  all,

Didn't have a chance to follow the stock today that much, but I see that we have a pullback.  Not surprising.  A bad PR campaign by Paul what's his name and some misreporting out there didn't help build market confidence.  Add to that a plethora of bashers taking over stockhouse, and the desperation of brokers trying to get shares in the next big thing as they know no further financing is upcoming.

Investor psychology is what this is about.  Let's face it, there are a lot of people who bought Noront at higher prices recently.  They have more to lose from these dips than the longs who waited out the pullback from 1.07 to .29 over nine months in 2007.  There are a lot of patient longs out there, but there are also a lot of new investors with some good money in the game by this point.

Many of these new entrants are many taking their 10-30% profit off of the table.  Some are likely overextended and are selling as the price drops.  Still others had set stop losses and found that they were triggered again today.

There is one thing that the hedge funds and shorters have more of than the retail investor.  That is deep pockets to spread risk and patience.  These guys are in no rush and will take advantage of any opportunity of low bids or overall uncertainty.  They make their money by waiting for the right spot to launch a downward assault on a SP, shake a few weak hands, and accumulate during times of low investor confidence in a stock.

I believe that today's pullback was a combination of many things.  Profit taking, shorting, a lot of cross selling, possible naked shorting and a lot of people waiting on the sidelines before buying to see where the stock price will settle at.  There are not too many investment funds that will get in on just one hole (a great hole at that) and a smile.  Hole 5 will bring a new type of investor (the institutional long) if the massive sulphides contain massive nickel, copper, platinum, and paladium.

I have heard rumours of a leak.  If you look at the volume over the past 15 days, I do not believe this is the case.  The leak was on stellar drill cores on holes 2 and 5.  It will not be on bad assays.  The two are almost contradictory, and Mr. Nemis speech to the brokers last week tells me that we will be in for a nice surprise on the next Double Eagle NR.

Look at the trading volume since the first Double Eagle news release:

August 27 brings back some sweet memories.  Today's 8M is a drop in the bucket compared to what the initial demand was.  I do not see signs of negative news.  Just a lot of "fear of losing profits" selling

Those of us who have been with Noront since it traded at .185 last year know that these swings happen.  The better the prize, the more manipulation takes place to get the price low.  Why?  Pros investors want into PP shares at the lowest price possible.  To do this, they work the SP downward.  The company can usually only generate PP sales on a price lower than market.  There are exceptions but they mostly have to do with private money, in which case the investors are getting a deal at the lower trading share price.  Pro buyers got in last year with the issuance of 30M PP shares and warrants at .50 and .75.  These were then be used to cover shorts from 1.07 down to below .50 cents possibly even further as the they are protected somewhat even at .50 cents do to tax breaks on the investement.

Unlike the first part of 2007, these people have likely now figured out yet that there are no PP or warrant parachutes left for the taking as Not will have 30+ million in the bank (currently 20M) after warrants are exercised.  You will see most of the warrants taken out after hole 5 results come out as the shorters with these warrants are forced to use them to cover from this week's mistakes.

Here is my take on the day:

It hurt to see the price drop below $4, but we are still at the fourth highest close since Double Eagle's first hit.  We have really only had partial hole one results since then.  Given that most of the market does not have the same faith in Noront as us (they would prefer to listen the likes of Mr. Paul Magoo), they have less tolerance for the risk associated with one hole and are more likely to take small profits and try to get in again later when things prove out.

We know news will hit anytime.  My guess is that Richard likely took the day off today after what would have been a very stressful week last week.  I believe we will have news from somewhere this week.  I believe we will see a short halt as well before Hole 2 and 5 results are out.  This will be soon unless of course they reassayed to confirm high values (just as they did with bonanza Hole NOT-6-100 last November).

When I look at the chart above, I do not see any problems.  This is not a blue chip stock where the value is known and a drop in SP of .10 cents causes a buying spree as the discount is spotted.  This stock will see a lot of ups and downs but will continue to hit news highs as we go.  Three properties returning news over the next 6 months will erase the doubts that are being strewn all over the place by the bashers.

My advice:  Watch the action but do not become emotionally involved with the swings.  Allow the next assay results and the future geological mappings and reserve estimates to determine the sp, not the current games we are seeing.

M1.