Bob Moriarty of 321 Gold writes about a company whose stock has been on a roller coaster, but he believes is now heading up.
I first wrote about Nexus Gold Corp. (NXS:TXS.V; NXXGF:OTC) in late 2016. The company had a tiny market cap of just under $7 million but had scored two great projects at a good price. I wrote about them again in early 2017 and by then the market cap was up to about $13 million. By the summer of 2017 the market cap ran up to about $18 million. Today the market cap is just over $8.5 million in spite of a lot of good positive results.
With any publically traded stocks there are a lot of things going on that only the insiders are aware at the time. After all, there is a lot of money involved. If you look at a chart of Nexus Gold, clearly someone started crapping on the share price in mid-September of 2017. The shares went from $0.22 a share (pre-rollback) to $0.06 a share in November. I saw it but shares tumble all the time without an apparent cause and there wasn’t anything I could say about it.
In June of this year Stockhouse did an excellent job of explaining what they saw happening. Both articles were more or less correct but failed to state the real issue. A big shareholder dumped millions of shares in a deliberate attempt to force the price down so he could steal the company. He failed.
Management changed. The new management cleaned house, did a reorganization then a capital raise. They are well cashed up and have added a third excellent project to the stable. The chaos was expensive for shareholders as the company felt it necessary to do a 10-1 rollback to get the share structure under control. So while the market cap is lower, the share price in constant dollars is a lot lower going from $0.07 when I first wrote about them to $0.14 and now $0.023 on a rollback basis. Nothing has changed on the ground except management and I’m satisfied they have the problems under control.
Nexus began a 3000-meter drill program on the two concessions in June with an additional 1000 meters on the Niangoeula property. Results will begin to be announced in September. I suspect now is the last opportunity to pick up shares cheap.
The company has done a highly technical but comprehensive presentation that all potential investors should read to understand the giant potential of this company. There is gold everywhere in Burkina Faso and they just happen to be sitting on top of a lot of it.
I liked Nexus the first time I wrote about them and the second. There was a hiccup but that happens with a lot of companies for a lot of reasons. Nexus is back on track and I believe will have significant results coming out shortly.
For many months I was saying that I expected a low in the June/July timeframe. I was off by a couple of weeks and it dragged into a low in mid-August. The summer rally could have used a massive dose of Viagra as it was pretty limp if that was it.
My gut tells me September and October could be very dangerous for investors as the third world currency collapse is picking up speed and easily could drag the entire financial system into a black hole. Have a plan that doesn’t involve dumping shares in a panic, as many will do. The next giant move is higher so don’t dump at the very bottom unless you want to part of the clueless herd.
Nexus is an advertiser. I have bought a fair number of shares in the open market. I am biased. They have a lot of information on their site and you should look at it. Do your own due diligence.
Nexus Gold Corp.
NXS-V $.23 (Sep 04, 2018)
NXXGF-OTCBB 38 million shares
Nexus Gold website.
Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.[NLINSERT]
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Nexus Gold. Nexus Gold is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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