Re: It's been a long time.
in response to
by
posted on
Apr 26, 2012 06:19PM
Keep in mind, the opinions on this site are for the most part speculation and are not necessarily the opinions of the company WITHOUT PREJUDICE
Tomandjerry, I would agree with your statement: "I am saying that shareholders dumped and ran for the exits when a tiny portion of the 11 very large drill cores were analyzed and they did not show what many had hoped. I am saying the main reason for the share price drop was how the results were perceived by the market."
That's a day-in-the-life of the junior resource market. Share prices are punished and rewarded as the market sees fit, whether or not it's justified, from one extreme to the other. I agree that it is rediculous to say Tesoro is finished based on 11 drill holes. But due to the hype surrounding the giant anomaly (like you say, proclamations of the biggest gold discovery ever), when the first round of drill testing came up empty, it suddenly opened up the possibility that the giant anomaly isn't gold, when the idea of such a thing was considered almost impossible before. The problem is no one can definitively come out and say yes or no, that the anomaly is either an ore body or is barren, so we're stuck waiting for more information to make buy sell or hold decisions.
I realize there is still a lot of debate as to whether or not the anomaly has been drill tested. Whether or not shareholders acted irrationally running for the exits and whether or not those first 11 holes did or did not hit the anomaly, the upshot of all this is the creation of doubt. Throw doubt into an extremely skidish market and results won't be positive. Despite all doubts, SLI appears to be holding at around 0.50 which is actually pretty healthy compared to most juniors out there. So hopefully the next round of drill results will answer all questions and dispel all doubts.