It is with some fascination and a little dismay that I've watched the events of the last few days.

It's been quite a tumble from $4.50 down to the present levels, and while a correction is reasonable with the economic news thats been coming out, I think the effects on Kodiak have been exaggerated.

I bought back what I sold last week, and am holding the profits to buy even more. I suspect the price will drop into the $1.80 to $2.00 range, and it bemuses to ponder why the price would hit these levels.

Talk of a recession is rampant, and certain indicators are definitely showing tough economic times ahead. However in the case of this particular stock, whether there is or isn't a recession is kind of a wash.

Even if you have to wait through 2-3 years of zero or negative growth in SP because we go into recession, if Kodiak does prove up the sort of gold reserve that we are hoping for, the takeover price will far outweigh the small gains that can be had from a less risky investment.

And there's the rub! This is a risky investment, and what the share price will ultimately do has little connection to the market. I don't want to be on the sidelines when a takeover bid comes in. Methinks it would be prohibitively expensive at that point to get back in, so I'm willing to swallow the risk knowing it's the drills that will ultimately make this a valuable investment, not the market at large.

Nothing has actually changed as far as what made this company worth $4.50 in the first place. The SP was always one bad press release away from tanking (and the last PR was not that bad....), so I'm looking at this an an opportunity to pick up discounted shares without the anchor of a bad press release around my investing neck.

As a final thought. If this does turn out to be a multi million ounce deposit, and the economic conditions make it unnatractive to develop, the ounces of gold aren't going anywhere. And when the economy picks up again as it always does, Goldcorp or one of the other majors will suddenly need to up production....it's not a matter of if, it's a matter of when. I would rather get my gains in one nice takeover sized chunk, than get 1 or 2 % on a bond.

If this turns out to be a serious bear market, there is probably no good place to put my money, so I might as well roll the dice a little with an investment that if it does pay off, will do so on it's own merits and not what the market at large is doing per se.....