Evolving Gold: The Post-Grandich Era

December 1, 2010 by · Leave a Comment 

COMMENTARY – – December 1, 2010 – Sometimes you can only take so much, when it comes to sitting and waiting for a stock you’re holding to take flight to the heights you envisioned when you first bought it. For everyone, there’s a limit, and when you’ve hit it, whether it be a personal limit or a price limit, you gotta go with your gut. And today, on his website, esteemed investment blogger Peter Grandich announced that he had hit his personal limit with Evolving Gold Corp. [EVG – TSX.V], a company that strangely enough opened the morning announcing very positive drilling results.

But, we’ve all heard the saying “It’s not personal, it’s just business,” before at some point of our lives. Grandich, on the other hand, stressed the opposite, stating:

“There’s no question EVG has two outstanding potential world-class projects and today’s news further demonstrates that on one front. However, EVG has been like a ball and chain to me as family, friends and followers have owned it and became quite “emotional” during the darker days. I truly don’t wish to have to deal with their frustrations on a daily basis anymore.”

Now, we recently covered Evolving Gold in October, interviewing President and Chief Geologist Quinton Hennigh the morning after results on drill holes 126 and 128 were released, and just as now with the results on holes RSC-132 and RSC-135, the story remains worth following. It’s also understandable how emotional the stock has been for Grandich, due to his addition of the stock at $1.40 to his tracking list. He’d since gone in at different points, even catching it when it was down, but again, it needs to be stressed that there were other reasons behind his decision.

Things can change rather quickly in this investment world. Not quite two weeks ago, the stock had won his love again, with his Grandich Client Evolving Gold – It’s Alive! posting. Through this entry, Mr. Grandich had seen the potential in what the stock was doing, even playfully commenting with his stock charts, “A weekly close above $1.25 would IMHO be a major technical achievement. A guy can dream you know-lol.”

Sometimes dreams can come true, albeit perhaps at the wrong time. As the trading day played out today, the stock flirted above that $1.25 level, hitting highs of $1.28 and $1.27 on more than a few occasions during the morning trading hours. The stock floated lightly back down to close at $1.16, but the fact remains that the potential Grandich wished for did in fact show itself, if even for a glimpse.

For those that are sticking with the stock outside of the Grandich announcement, the fact remains that the company has shown potential, and does so for the same reasons that Grandich got into it for. Two great properties, showing gold trends with open-pitable potential for the future. Gold went up again today for the third day in a row, and that never hurts the potential for when the mining commences. Every company has to start somewhere, and its not like the Evolving Gold story doesn’t mimic other success stories from the past.

Hopping in our time machine back to February 2009, Ventana Gold Corp. [VEN – TSX] was in the same league as Evolving Gold, hovering in the $1.00-$1.50 region, before positive announcements of its La Mascota drill results shot the price up to $4.44 within a week, during June. Too some, that may have been enough, and for their own personal reasons would’ve gotten out at that stage, but after holding on at that rate for a few months until October, La Mascota news bumped it again to $8.60, and further to $12 by mid November. That said, a lot can change when it comes to outlooks on stocks, dependant upon when you get in. Ventana dropped back down to $6.44 at a point this summer, which even now looks like a great price to have gotten in, since the stock is currently trading above $13.

These stories happen all the time. Rainy River Resource Ltd. [RR – TSX.V] is another, which spent most of 2009 between $1-$2.25 before closing 2009 off at $4. Standing tall and nearing the $13 mark, RR has come a long way from its post-2008-crash lowpoint of $0.67. Its story currently swirls around 2.18g/t over 298m, whereas Evolving Gold’s is 1.31g/t over 405m.

Another is East Asia Minerals Corp. [EAS – TSX.V], which bounced away from its 2009 opening of $0.21 to $4.40 at the same time to open 2010. Even though it spent most of 2010 in the $1-$2.50 range, EAS made its projects’ stories count, and its shareholders reap the reward of $7.39 a share today. What matters is when does the story take hold and captivate the audience it needs.

After today, Evolving Gold may have to go on without the help of Peter Grandich’s coverage, but given the popularity of its story in the aftermath, it may not need the extra coverage. Whether his decision to get out was the right one at the right time remains to be seen, but reading his insights over the company will surely be missed by us in his readership that refuse to let go.

G. Joel Chury

Editor in Chief

DISCLOSURE: No fee has been paid for the production and distribution of this article and as such should be viewed in the context of a commentary. The author does not own shares of any of the companies referred to within the article (EVG, VEN, RR, EAS).

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