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Gold Standard Ventures Corp. valued at only $120 million

March 9, 2012 by · Leave a Comment 

GUEST COMMENTARY–Rockstone Research

 Since publishing the latest drill assays on February 22, the stock price of Gold Standard Ventures Corp. rose from $1.20 to $2.20 on the TSX as the following chart shows.
With 10.5 million shares, the trading volume was high especially in the first 2 days, whereas some 13.5 million shares changed hands in the subsequent 6 trading days. During the last 4 trading days, the volume normalized to an average of 0.5 million shares per day. Thus, around 26 million shares were traded within the last 12 trading days (on average 2.2 million shares per day). Yesterday, the stock closed unchanged at $1.90 after “only” 345,443 traded shares. Hence, with 61 million shares issued and outstanding, the market values the company at $120 million.

As the left chart indicates, the stock price fluctuated within the blue triangle legs between the IPO (June 2010) and February 2011, whereafter the upper leg was broken at approx. $0.80 and the price rose to the $1.50-level – which action is called a “breakout”. Until early 2012, the price consolidated along the blue trendlines of the second triangular formation and reached the apex of the first blue triangle at approx. $0.75 – which action is called a “classical pullback”. Typically with triangular price formations, the price starts a final and strong movement after a “pullback” – which action is called a “thrust”. The thrust to the upside started in January 2012 and rises within the green trendchannel since then, whereas short consolidation periods occur along the red parallel resistances.

Taking a closer look at the “thrust” since the start of 2012, it becomes clear that the price currently consolidates beneath the red and blue resistances after having reached the uppermost green trendchannel at approx. $2.15 and $2.25.Thus, the next strong buy-signal is generated once breaking above the blue resistance currently at approx. $1.93 and especially when rising above the red resistances currently at approx. $2.10 and $2.20.A sell-signal is not given until breaching the lowermost green trendchannel currently at approx. $1.70, whereas a first sell-signal is given once falling below the green support and the black horizontal trendlines at $1.88 and $1.82.
After releasing the sensational drill assays on February 22, a conference call was set up on the same day hosted by Jonathan Awde, CEO & President, and Dave Mathewson, Vice-President of Exploration. The 45 minute long and quite enlightening conference call (incl. a question and answer session) has been recorded and can be accessed via the following link:
www.soundcloud.com/rockstone-research/gold-standard-ventures
During the conference call, the following 4 slides were referred to:
SLIDE #1: Railroad Target Zones
SLIDE #2: Drill Hole Plot Plan, North Bullion
SLIDE #3: Exploration Model Cross Section
SLIDE #4: Railroad Gravity

To view the slide images and continue reading this article please visit: http://en.makrocheck.ch/375-Research-Companies-2012-03-08

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