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Stop trying to scare people, this stock, like all pinks, does not trade in the AH markets. That was a form t trade, nothing more than the MMs closing out and offically recording a few days they didn't have the time to do so earlier in the day. Form T trades have ZERO impact on the pps or the next days opening pps. They have no impact on the stock what so ever other than the volume from that trade is added into the volume for that day.
Anyone who doesn't think todays news wasn't big clearly doesn't understand what the news means. Simple as that. We had a AS of 3 billion, meaning the possiblity for future dilution was always hanging over our heads even though our CEO promised he wouldn't dilute the common shares.
While our OS were very low at 289 million, the fact that our AS was at 3 billion basiclly created a cloud of doubt over us. By not just reducing the 3 billion AS, but almost completely eliminating it, this is a STRONG message to all investors about KATX. That message is, our company has no need to dilute shares to pay it's bills. Simple as that. This move shows incredible strength.
On top of that, this move also pretty much confirms 100% that we now have a strong source of financing from somewhere. Taken with the fact that our CEO said last week that in the next 2 weeks he will be updating all of us about the status of financing, you can pretty much bet the house that hes going to come out sometime in the next 2 weeks and tell us KATX got full financing for test drills at the very least.....
Furthermore, the move today leaves the AS for the common shares at a max of 500 million, which is still a very low number. So that pretty much means we can't go over 500 million on the common share side, and the prefered shares have a AS of roughly 500 million as well. These are GREAT numbers for a company like this, and almost unhead of for a mine exploration company of this size. Usually companies like this are over diluted by this point in their life. Not only is KATX not diluted at all, our CEO just removed the possiblity completely of that ever happening.
Anyone else want to question whether if Ken Stead knows what he's doing? He's setting the whole stock up for something big... Taking all the right steps to make this stock as healty as possible before he announces what ever it is in a few weeks.
Todays movements are nothing compared to whats coming when they announce the big news in a week or two. This stock is going to be flying very very soon. We are going to be LOL at the days where we got excited by "only" going up %60 in a day :P
Yea when I saw the MMs scrable to stack resistance at the .04 level it appeared that they were about to try to walk it down. This might look kind of nasty here in a bit as level 2 shows they have a clear path to walk it down quite a bit more right now. Hopefully some more buying volume will flood in.
Again we have a max of only 500 million shares they could even possibly issue for the common, leaving us with around roughly 500 million for the prefered. This is a very low number and a very nice spread. This shows incrediable strength and confidence from the company and almost surely means they have MAJOR financing already done if not a full blown joint venture!
Me too, no more than 5 min ago i posted the level 2 and said the MMs were going to let it run today and that based on L2 and the charts it looked like we could hit .035 or even .04. I didn't expect us to go that high within 5 min of me saying that lol :P
Yea this isn't something a company would do unless they were sure they had financing of some kind. Also one needs to simply ask the question: Why would a company announce it is going to update it's investors on the status of financing if that status hasn't changed?
The simple answer is they wouldn't.
Quick Level 2 update!
We really do not have any resistance on the up side. Right now we have a small level at the .033 level, but I don't think we would have any toruble breaking that. It looks like, at least for right now, the MMs are going to let this continue to run as they should. The MMs have also showed strong support for us at the .03 level today which is also very good.
Based on the charts and the L2 data, this could really run today, even more than where it's at now! Wouldn't surpise me if we hit th e.035 level or .04 level today.
I have no idea who that guy is lol. But we do appear to be on the same page :)
Technically, we really couldn't dilute this stock before. I believe there was a special restriction on how many common shares they could issue. While our AS was 3 billion which was quite high, they had a max limit of only 500 million on the common shares. So they couldn't issue more than 500 million common. 1 billion might seem like alot to some, but let me try to put that in perspective. The way it's set up now, that 1 billion A/S translates to only 500 million for the common and 500 million for the prefered roughly. Right now we only have 289 million shares outstanding. Out of those, roughly 50% of them are restricted I believe, which leaves our float at only 182 million.
One needs to look at the timing of this to see the bigger picture. Whats the main reason a company has a high A/S? To give them selfs the room to sell more shares to raise more money for the company, which in turns dilutes either the prefered or common shares.
KATX retiring 2 billion shares from their A/S count indicates that they believe they will NEVER need to sell a bunch of shares to raise money and pay bills. I don't believe most people here are really grasping what this means and how big this is. For a pinksheet stock to retire that many shares and only leave them with 500 million max for common stock and 500 million for prefered, that is pretty unheard of, specially when they are trading around these levels.
So what could this all mean? While I thought it was pretty obvious for a while now that they had financing for the test drills, this move really makes me question if they haven't already signed a joint venture too. It's very clear to me that they have not just got financing for the test drills, but they appear to have a good, long lasting source of income. A move like the one they did today shows great strength for the company. In my opinion, this at the very least shows they got good financing from some place. To me, the most logical way they did this was by signing a joint venture with a mining company.
I believe next week we will get the new Handcamp pr detailing the latest results from there, and then the following week they will "update" us on the status of financing, which might also be a joint venture announcement! Great things to come!
The only type of stock a company would get in a joint venture would be prefered stock, not common. Ken has stated many times and answered many questions directly about this. If they havent already, when they do a JV they will not be giving them any common shares. Ken has also said what ever way the raise money, it wont be any way that would dilute common shares.
Doing your own DD as well is very important and something I always encourage. But yea I believe the longer you hold this stock the more money you will make on it, simple as that. Short term we could have big news coming that might move this up a good bit, but down the road a few months things stand to be a whole lot sweeter!
heh I think I am the only one on here that understands what your asking, I am sure there are a few people who saw this and were like why is he talking about "cocks". But yea, I love the "GAMEcocks" even though we suck year after year after year. =)
Hope so, would be a good sign. IMO we will get the new results from handcamp first, then the updating on financing, so it could be a nice one, two punch. Or maybe a nice little combo if the financing update also is a joint venture announcement!
could be the case
First of all congrads on the wedding! 2nd, let me try to clear a few things up. I expect some pretty big news in regards to financing to come out with in the next few weeks or so, but that doesn't mean it actually will or the news will be what I expect it to be. The biggest news for this company will be the results from any test drills they do, and those wont come till spring at the earliest. And that is if everything else goes perfectly.
My best advice would be try to hold on to KATX as long as possible. As good news does happen to come out soon, and the stock does shoot up, then your good to go. But just always rember, this has the possiblity to go much higher down the road.
The news I am refering to btw comes from the PR Ken put out last wed. He stated that he would be informing us all on the status of financing in "a cupple weeks". I have some reason to believe that news would be big, and that they will pretty much tell us they have acquired financing for the test drills. It is also possible that the reason they got financing is because they signed a joint venture with a mining company and that would be huge too.
But my theories on this are based on some logic, common sense, and reading between the lines. None of that may be the case. We will just have to wait and see. In anycase, great things will be coming to this company very soon.
My only question is, if the status of financing hasn't changed, what would the point be to update us on that fact..... :)
Thanks, again I just try to translate things and put them in proper perspective. Everyone on here should do their own DD and research and only invest in a stock AFTER they do their own fact checking. Glad I was able to help some though.
Is that a respond to when I said "there was no reason for it to really go up that high today"? Or to something else I said?
While it could have been an AON order, I am not so sure if this was the case. Most of the time when a investor is trying to buy or sell a large number of shares, they simply do it in small blocks to keep the price at the same level and to keep from scaring other investors that might panic and sell off too if they see a big sell order go through. Even the MMs do it this way, or use ECNs to hide their orders. The only time you really see a MM place a big buy or sell order is when they want you to, which means they are about to set the stock up for either a run or a sell off.
Also, I am not sure if there was enough demand for a MM to buy a full 2.3 million shares in one single block today at that time. Might have been though.
In anycase, it really doesn't matter what this sell was or why who ever placed it did. Anytime a stock goes up alot, you have these. It's just to be expected. When news comes out, this will shoot up alot, but there will be plenty of people cashing out with big sell orders too. Of course the buy volume will be so strong it wont really matter then. But at some point, after the run starts to dry up, there will be alot of people profit taking and the pps will drop. Again this is to be fully expected. The only question will be how much will it pull back. Anything less than 65% and we will be good to go!
Thats perfectly true and does happen. But it doesn't happen with every stock. Just because alot of people think a company is good, doesn't mean they will all buy in and cause it to shoot up. I mean this went up over 700% in nov, and held on to around 50% of those gains. It just needs a nice kick in the butt thats all. I have been in plently of stocks that looked amazing and people were excited about them, but they didn't go up untill the news hit. I have also been in companies where people were excited and waiting for the good news to come, and in the 3 or 4 weeks before the news hit, the stocks went up a dollar or more just on the anticipation. Then when the news it self came out, it only went up a small amount.
Since this is a pink, I wouldn't expect it to go up that much before the news hits. After the news, that is a completely different story. I agree though, I would love this to shoot up before the news comes though.
I think you are making way to big of a deal about the 2.3 million dump today. That sell didn't even drop us when it went though. We went form .0263 to .0251 on a sell of 156k right before the 2.3 million sell order was filled at .0251. Not only did the 2.3 not really have any effect on our pps, the next 4 trades right after it where at .026. So we bounced back right away after that. But the important thing to rember is that 2.3 didn't trigger the down trend today, we started going down an hour before that. The question is why....
It was quite clear why we went down so much today and I said as much before it happened. Level 2 showed what was about to happen clear as day. Around an hour before close, we had tons of MM stacked at .03 creating a lot of strong resistance at that price. That would have been fine if we had a nice support level not too far below .03, the problem is the MMs only support level was at .0265. And it was a fake support level at that. The MMs set this up to go down the last hour. The MMs didn't make us go down, or do some massive sell off, they simply set the stage for us to go down the last hour and the day traders and profit takers did the rest. They could have stopped this at any time by building a support level, but they didn't. As we got close to the .0265 support level, the MMs removed their bids at that level and then lowered it to the .024 range before that level ever had a chance to be tested. So basiclly the MMs wanted this to go back down today which is typcial when this stock runs up quickly on no news.
Overall, the last hour today wasn't a big deal, and what happened actually was pretty common. The MMs set the stage for this to fall, the day traders took the bait and the MMs let it fall. We still finished up very nicely over all for the day. It doesn't matter who dumpped 2.3 million shares today, or their reasons why. It really didn't have any impact on what happened today. The MMs set the stage for this to happen an hour before that sell went through. That sell didn't start all of this, it was at the tail end of the final hour sell off.
What people should draw from today was how fast this stock can shoot up. We had no news here, no reason for the stock to go up like it did, and yet it went up almost a penny today. Sure the MMs brought us back down, but what we saw today was just how fast this stock can move and how much money is sitting on the sidelines waiting for this stock to move. Same thing happened in Nov when we went from .002 to .045 in 3 weeks or so. Once big, ground breaking news hits, this should have no problem going up very high.
This has been answered many times before on here. It's a well known and common pratice for TDA to put buy restrictions on some stocks, simple as that. They do this for many reasons. Thats just how the work. They have had this restriction on KATX since early Nov. This isn't new.
They also will not allow you to buy a stock for no reason out of the blue as well. It doesn't happen often, but they still do this. Other brokers do the same thing as well.
While I thank you for pointing that out, I didn't mention it because there was nothing to mention. As others have stated, it's a done deal. Basicly what happened was KATX issued some Form D 504s a while back to raise money and it caused all kinds of problems. They took care of it long ago and Ken has stated many times that they would never look to doing 504s again and that they learned their lesson from them.
We have had quite a few people on here email Ken directly about this very issue, and he has always been stright forward about this and has allowed us to publicly post his email responses about this question. While some of what you quoted me as saying was my own personal opinion, most of that quote was actually facts or based on facts like the one I just talked about. Ken is a very honest and open CEO, and I stand by that statement.
I hope this helps clear up any questions you might have had about this.
TDA has had the "phone in" restrictions on KATX since OCT, it has nothing to do with the buyers being gone. I have been in few stocks with them where they have done that, or kept you from buying the stock at all, even over the phone. TDA simply trys to protect it's investors too much and trys to tell them what they can and can not spend their money on. It makes me pretty mad they do this, but not mad enough yet to transfer my money to a new broker.
The MMs set the stage for this to happen, some of the day traders just decided to go with that the MMs were giving them and buy early and sell late. The MMs had resistance at the .03 level, but they on purpose had no support till you got to the .0265 level, allowing for a big gap which was just like a big "sell now" sign to the day traders.
But hey, we still finished up very nicely for today, yet another day in the green and this stock continues to roll. I would have loved for us to end up close to .03, but just a week or so ago we were tuching the .0165 levels so this is a nice bounce back off of our new bottom. This stong has proven to be strong with or without news. It's very very healthy.
Today was a good example of how fast it can run up on no news. Just imagine what will happen with major news comes out. If we can increase our volume 10 fold and go up almost a penny on just a normal day with no news or events taking place, think how far we will go on big news like a joint venture or financing! :)
The MMs arn't going to let us run up anymore today. I saw this coming an hour ago, they set up alot of resistance at the .03 level, but had no support till around the .0265 level, they were setting this up to fall. When it got to the support level at .0265 they quickly removed support at that level too and left a big gap for it to fall down again.
Sucks but hey, we are still going to finish up for the day!
The MMs have a bunch of resistance stacked up at the .03 level so not sure if we will be able to break it today or not. Hopefully we will finish strong though, anyway you slice it today was a very nice day :)
Thanks bro, I just try my best to put all of this in perspective.
What EVERY investor should know about KATX!
I am writing this post as a completely non-bias overview of KAT Exploration. It is my intention to provide a complete overview of KATX in one big, easy to understand and comprehensive thread. The purpose of this is to provide long term investors of KATX and new investors alike a single place to find quality information on KATX. In this one post I am going to compile all of the known facts about this company as well as some of the current opinions and theories about KATX and their future. I will make it clear when I am talking about opinions as not to try to confuse anyone. This is not intended to be a complete history of KATX, only a complete overview of where the company is at now and what it has done in the recent past.
Disclosure At the time of writing this post I am currently invested in and hold shares of KATX.
Brief Summary of KATX, for a complete background on KATX please go to the I-Box page located here at the top of the message board.
KAT Exploration Inc.
is an exploration company based in Mount Pearl Newfoundland and was incorporated in December 02, 2005. The company has a variety of mineral properties consisting of Gold, Copper and Silver.
Key Company Information
KATX is a Mine Exploration Company that currently fully owns 5 property's in Newfoundland, and has rights to a 6th property and is under contract to fully acquire that one as well.
Out of these 6, the two most important and promising ones short term are their Handcamp high quality gold property and their Rusty Ridge high grade copper property.
KATX is run by CEO Ken Stead and his brother Timothy Stead. Both brothers own a controlling interest in the company eliminating the possibility of a hostile take over from a 3rd party.
KATX currently has 289 million shares outstanding. This has been a solid number and very low considering the type of company KATX is. The CEO has not issued anymore shares for well over 6 months now and has no plans to do so in the future as well.
Right now the company's main focus for 2010 is their high quality Handcamp gold property. They are only weeks away from announcing possible financing for test drilling on this property and might even be announcing a Joint Venture with a mining company to begin work promptly on mining once the test drills are completed.
Ken Stead
Mr. Stead is a co-founder of Kat Exploration Inc., and has been president since the company's incorporation in December of 2005. Mr. Stead worked directly in the mining industry from the early to late 70's, where he first started with the Iron Ore Company Of Canada and worked for Noranda at their Nanasivik mine in Stratacona Sound, northern Baffin Island. In the early 80's, Mr. Stead worked in the oil fields of Alberta, afterwards returning to Newfoundland where he set up his own construction company from 1985 to 1995. In 1997, Mr Stead became a co-founder of Cornerstone Resources Inc., a junior mining company now trading on the TSX-V (CGP) until he resigned in 2004. Over the past nine years Mr. Stead has been actively working in a Sedimentary-Hosted Stratiform Copper environment and will continue to make this one of the company's priorities.
Ken Stead is one of the most open and honest CEOs out there. He has made it his goal to preserve and increase share holder value. He has put his money where his mouth is by using his own personal capital to fund projects for the company instead of diluting the common shares, something very few CEOs would be willing to do. He responds to phone calls and emails very quickly, and has answered all questions he is legally allowed to answer. He is a very straight shooter and does not keep anything from the investors.
Handcamp Gold Property
This is KATX's flagship property and main focus for 2010 and beyond. The "Handcamp" is located approximately 33km north of Badger, central Newfoundland and 10km northeast of the old abandoned "Gullbridge" copper mine. Abandoned logging roads run through the property allowing for excellent accessibility and mobility of heavy equipment.
What makes this property so special isn't the fact that it's a gold property, but the type of gold property that it is. Handcamp is a very special and unique type of gold deposit known as a "Volcanogenic massive sulfide" (VMS) deposit. Making this property even more special is the fact that this isn't just any type of "VMS" deposit, but it's a "Felsic" VMS deposit. World wide there is only something like 800 of these VMS deposits. They are known for their high tonnage, high quality gold deposits. Of these VMS, the best quality, highest producing gold deposits are the "Felsic" VMS deposits. Right now, out of the 40 VMS deposit sites in Newfoundland, KATX's Handcamp site is rated the highest gold grade with a 13.4 rating. It is the highest grade VMS gold site in all of Newfoundland according to the USGS.
Handcamps special and rare nature has already been validated and backed up by a series of surface rock and soil samples that were processed at a lab. Rock samples were collected over the prospected areas with numerous samples showing very significant mineral content with some gold numbers as high as 158g/t Au, 94g/t Au, 82g/t Au, along with excellent Zn, CU, Ag numbers.
Not only are these gold numbers FAR higher than any of the surrounding mining sites owned by other companies, these numbers are ONLY from surface rocks. Felsic VMS deposits are not the type of deposits that have most of their gold in the surface layers, but instead, most the gold deposits are deeper in the ground. To find these levels of gold in just the surface rocks would imply that there should be FAR more in deeper deposits.
How does Handcamp compare to other near by sites?
Here is a good comparison to how KATX's Handcamp property stacks up against a similar mining company. Anaconda Mining is located right down the road from Handcamp and currently is mining their Pine Cove gold property and has already brought gold to market from their site.
Anaconda has completed a NI 43-101 technical report on their Pine Cove site and has been actively mining it for the past 2 years.
Here are the results of Anaconda's test drill 43-101 report on their "Pine Cove" Gold property.
probable mineral reserves of 2,332,676 tonnes at 2.76 g/t
And now here's Handcamps results ONLY from surface samples.
158g/t Au, 94g/t Au, 82g/t Au
As you can see, KATX's Handcamp property is showing far more gold in just the surface rock than what Anaconda is getting from it's actual mining. This is one reason why people are so excited about KATX. We will still need to get the test results back from a test drill to confirm exactly what's in the ground though.
What's ahead for Handcamp and KATX
Here's what we know right now. Ken has been working on finding financing for the drill program for some time now. He announced last week (the 5th of jan) that they will be releasing more of the Handcamp sample results to the public as well as updating us on the status of financing. He gave a time line for these announcements of only a few weeks, so they are expected anytime now.
Right now, KATX needs financing for a drill program. Then they simply need to do the test drills and release a NI 43-101 report and partner up with a mining company to start mining the gold. That's it.
Ken has also been looking for a possible Joint Venture with a mining company to not only do the test drills, but also do the mining once all of the test drills are complete. His ideal plan for this was to sign a joint venture partnership FIRST, then start the test drills. The fact that he is about to update us on the status of financing leaves many people here to believe that they at the very least have acquired some type of financing, and that it is very possible they might have already signed a joint venture as well. These are just rumors as of now, but they are based in reality.
When they update us on the status of financing in a few weeks, if they have acquired some type of financing for test drills than that would be HUGE news for the company. That would mean they now have the capital to complete the last step before mining.
If the financing came because of a joint venture partnership with a well established mining company, then it would be even bigger news for the company.
If they already have financing in place, they could start the test drills soon and we could have results back via a NI 43-101 report as soon as early spring. If that report confirms what the surface samples have shown, then KATX would suddenly be worth a lot of money and be a very valuable company.
Estimation of Value
Now it's time to try and put everything thing is perspective and figure out what KATX is, and will be worth in the near future. I am going to do this from a few different angles to give a wider perspective on this.
Mine Exploration Companies are notorious for having to dilute their shares to pay their bills. Even the ones with great prospects usually have outstanding share counts well over 500 million. This is not the case with KATX and are CEO has done an amazing job of not diluting the common shares.
Here are the numbers for KATX as of December 2009:
Authorized Shares (AS) = 3,030,000,000 as of December 15, 2009
Outstanding Shares (OS) = 289,711,664 as of December 15, 2009
Float = 182,711,664 as of December 10, 2009
Note: 500,000,000 shares max available for common issuance
These are VERY low numbers for a Mine Exploration Company. I am going to compare these to a very similar Mine Exploration called US Gold (UXG). This company is almost identical to KATX in shares, size, and development. They currently are not mining yet but have completed test drills and filed IN 43-101s, something KATX is not far from doing. Right now the only real difference is that they have completed their test drills and published their results.
UXG currently has around 106 million shares outstanding (OS).
A little over a year ago they were where KATX is right now, about to get the results back from their test drills. At that time they were trading at around .30 a share. When those results hit, they with in a matter of weeks went from .30 to $1.20. A few months after that they were trading at $3 a share. This was all due to them getting their test drill results back and publishing the 43-101 technical report detailing the findings. That is what got the ball rolling.
Here is what UXGs report said about their property.
US GOLD CORPORATION (NYSE Amex: UXG)(TSX: UXG) is pleased to announce good exploration results from Nevada. The best results continue to come from West Pick, including 0.06 opt (2.05 gpt) gold over 75 ft (22.9 m) and 0.027 opt (0.94 gpt) gold over 180 ft (54.9 m)
These channels are present in the West Pick area where US Gold has encountered significant mineralization, including the best results announced earlier this year of 0.085 opt (2.9 gpt) gold over 150 ft (45.7 m) and 0.065 opt (2.24 gpt) gold over 120 ft
So as you can see, UXG's best gold results were 2.9 g/t.
Here's KATX's Handcamp results for comparison:
rock samples were collected over some of the prospected areas with numerous samples showing very encouraging mineral results, of 158g/t Au, 94g/t Au, 82g/t Au
Again, here is a company that has almost the same number of ountstanding shares as KATX, and only has completed their test drills and they are trading around $3 a share with a high of $3.50 after shooting up from .30 a few months before. Again, it is important to note that KATX's samples are ONLY surface samples. There is a good chance there might be even higher levels of gold the deeper they drill.
But this is not all that KATX has to offer. As stated above, their main focus for 2010 is going to be Handcamp. But they have 2 other very very promising property's as well.
KATX Twi-Lite High Quality Gold Property
This property actually could turn out to be even bigger and better than Handcamp. Right now, the first results from there have shown even higher levels of surface gold than Handcamp.
Results from KATX Twi-Lite Property
The Discovery Prospect: Zone of quartz veining and associated silicification, high of 202 g/t Au (Visible Gold)
The Spring Pit prospect: bedded pyrite/mafic fault gouge (high of 14.9 g/t)
The 320 Vein: zone of quartz veining and quartz breccias (high of 16.6 g/t)
The Paddy's Pitt prospect: silicified and brecciated siltstone (high of 23.80 g/t)
KATX High Grade Copper Property Rusty Ridge
Coincidental magnetic Induced Polorization(IP) resistivity and soil geochemical anomalies suggest potential for a body of Iron Oxide +/- Base, Precious and Rare Earth type mineralization, similar in style and setting to the giant Olympic Dam deposit in Australia
Olympic Dam and related deposits all occur within continental rift sequence rocks adjacent to major structures. The Rusty Ridge is located within a continental extensional environment within peralkaline rocks emplaced adjacent to a regional fault system. The presence of a large magnetic body(can be viewed on Kat’s website)that appears to be intrusive into the overlying rock sequences that appear regionally altered, are variably pyretic and contain vein type fluorite mineralization and appears to suggest a magnetic origin for the mineralization
A completed 3D inversion modeling of the airborne magnetic data, (can be viewed on Kat’s website) show a discreet, strong magnetic anomaly underlying the Rusty Ridge area. Coincidental with this are moderate to strong IP chargeability anomalies that suggest a significant concentration of sulfides. Those large anomalies have been determined as future drill targets that Kat would hope to test mid 2010
So there you have it, KATX has 2 extremely promising and rare high quality gold property's that have already shown to date MUCH higher levels of gold than any of the surounding mining companies sites and much higher than similar Mine Exploration companies that are currently trading at around $3 a share. Also of important note, last time KATX had major news the stock pps went from .20 to $2 in 3 days. Back in Nov when the last bit of big news hit, the stock went up over 700% in a week. Since this KATX has only given back around 50% of it's gains before moving up on it's own again. KATX clearly can move on good news as it should and there appears to be more great news coming soon.
What KATX is worth
With the likely news of financing for test drills looking like it could be coming in a matter of weeks, this might be the last chance to get into KATX at these levels. If KATX does indead annouce they have financing in a few weeks when they release their status update, then that would surely cause this to shoot up. How high is a tough guess right now. If they annouced that they have signed a Joint Venture and that is how they acquired the financing, then that would be even bigger and cause KATX to shoot up much higher.
From this news alone KATX could go up .10 to .50 if not higher. The biggest news will be when ever they get their first results back from the test drills which could be as early as spring. If the results confrim what the surface samples have shown, then your looking at a company that could shoot up to $3 to $5 pretty fast. When you look longer term, and factor in that they have a very very promising copper property and another extremely promising gold property that might have even more gold in the ground than Handcamp, KATX could very realistically be in the $5 to $10 range a year or more out.
These are all of course rough guesses right now based on what this company has done in the past and what other, similar companies have done as well. No one knows for sure what this will do, but the chances of this going up a good bit are definitely there. Right now, KATX is very undervalued at it's current prices, and it's also cheap enough to make it a very attractive stock to hold for both short term and long term gains.
Summary of things to look for in 2010 from KATX
1. Any day now KATX is expected to release more lab results from it's high quality gold property Handcamp.
2. Within a few weeks KATX will be updating us on the status of financing. (it is expected that they have financing already but right now this is just a rumor)
3. Announcement of KATX entering into a joint venture with a mining company. (this could actually be announced with the financing updating coming in a few weeks or it could come at anytime after that update)
4. KATX announces that they have started the test drills on Handcamp. (depending on how the other things play out, this could come as early as Feb.)
5. KATX releases a NI 43-101 technical report on the test drill results from Handcamp. (this could come as soon as early spring)
6. KATX announces it has started mining operations on Handcamp. (this could happen as early as summer or early fall)
7. KATX announces it has entered into a joint venture partnership to do test drills on their Rusty Ridge copper property. (this could happen sometime mid 2010 or later)
Special Thanks
Wanted to give a very special thank you to Birdmanbob4! You have done great DD here and I have used a good bit of your research in this thread, thanks again!
Also wanted to give a big thank you to Teedlum for suggesting we do one big thread with all the DD in it! Hopefully this will be able to better answer some of the questions we get around here on a day to day bases and be useful to new and old investors alike!
Also wanted to give a big thanks to everyone else that help make this possible, including everyone here on the board, most of who have chipped in one way or another. Thanks again!
Hey thanks a bunch guys and of course to you Investor911!
I have been working on putting together something special and much needed on here for the past few hours or so. Should hopefully be done very soon. This is something Teedlum suggested a few days ago and something I believe will be of much use to the forum for new and old investors a like. This is totally not my idea, it was Teedlum's, so he gets 100% credit for coming up and suggesting this. I am simply just putting it all together. Hope you guys find it useful!
Thanks again for all the support guys, and of course go KATX!
Very very nice finish today, we broke through the .021 resitance surpisingly quickly in the last few min of the day and then ended at the HOD. Up 10% again with out any news. This stock is trading extremely healthy right now!
Hope so, would love to be even 1/2 right about that. I would be happy with just one JV right now though :)
Keep in mind, you are talking about them releasing the news regarding the status update on "financing". I think you are forgetting that they are also going to be releasing news on new lab results from Handcamp grab samples as well in the next 2 weeks. I would agree with you on the fact that I don't believe that wed would be the best day to release any news regarding financing or a JV. But the way I see things is I expect for them to release the PR about the latest results from Handcamp first, then the next week release the PR about the status update/JV.
It would not surpise me at all if they come out tomorrow and release the Handcamp PR. But yea, I wouldn't expect them to release a major PR about financing on a wed, I would expect that one to drop on a monday.
Just wanted to give a quick update on what it appears this stock will do for the rest of the day according to level 2. Right now there is strong resitance at the .021 level that we wont be able to break through today on with our low volume. At the same time there is good support at the .02 level which should hold. So we are likely to finish the day some where between .02 and .021. Even if we finish right at .02, this will still be good because we have been ever so slowly moving up over the course of the past few weeks. It was just a week or so ago when we were hitting our new bottom and retesting that at .0165.
I take this all as a good sign, and a healthy stock with good natural movement. What has me excited is we are actually moving up on basicly no volume, slowly but still moving up, and with big news looming in the near future, this thing is in a very good trend right now to support a nice run when the news does hit!
Keep in mind, that Ken has mostlikely had the other lab results from Handcamp for quite some time now. He just hasn't released them yet to the public. I would bet he would be using them to show to other possible JV partners. Also, Ken has stated that his ideal approche would be to form a JV first, then start test drilling.
Heres something to think about and ponder, what if there isn't a single JV, but two of them? It wouldn't surpise me if he signed a JV with a company for Handcamp, but also signed a JV for Rusty Ridge. Both sites are ready for test drills and have many targets selected already. Imagine if they annouce a dual JV where they will be doing test drills on both properties at roughly the same time and be mining both properties at the same time bringing in money from both gold and copper.
I don't believe this outcome to be very likely, but it still is quite possible. =)
All we need is financing of any kind and this will be off to the races. We got gold in the ground, it appears to be a ton of it down there, but even if it's only a "decent" amount which I find unlikely, KATX will still make a lot of money. Of course this is just talking about Handcamp here, Rusty Ridge looks to be an amazing copper reserve that will also be worth a ton. And then theres Twi-Lite, which is yet another great looking gold property with even higher grab samples of gold than Handcamp so far.
Financing is the key, if they got it they can do test drills, thats huge because thats all they have left to do to form a reserve report that will tell with a good accuracy whats in the ground. If they got the financing through a JV thats even bigger. Because not only would they have the money to do the test drills, but they would also have a partner lined up upon to actually mine the stuff right away too. It would be a very quick turn around.
What we know already right now is it's very likely they already have the financing in place and we know for a fact that will be telling us about it in a few weeks. What we also know is there are lots of gold processing facilities around Handcamp that would love to have more gold to process. And what we also know is there are lots of mining companies around Handcamp that would love to partner up with a company that has a rich gold property.
Good things are coming, could be MUCH sooner than later :)
How am I a " sensitive" one? What you said was completely wrong, and I simply corrected it. I didn't get "mad" or "upset" about it, just pointed out what the reality actually was.
Also it is not like ken to release a PR in the middle of the week, did not say it could not happen.
Yea the sparks we need are already ready to go in my opinion. We know pretty much for sure we got financing of some kind for test drills, which is big spark number 1. What I like about this spark is the fact that there are many different ways to get financing, one being via a join venture, which is something Ken already has stated he would like to do BEFORE starting the test drills. If this was how we got the money, you guys better hold on tight because that would be massive news.
Spark number 2 would be the actual results from the test drills which should hopefully hit sometime in spring. Knowing already whats on the surface, theres a great chance that the deep test drills might show massive amounts of gold in the ground, but even if it came back with decent amounts, KATX would still make alot of money.
And all of this when we got more Handcamp results about to hit too which should be very good as well.
So yea, I belive the sparks are in place and I have no doubt the gold is in the ground where it needs to be. All we really got to do is just sit back, relax, and wait.....
It's not like Ken to release one in the middle or the end of the week? Not sure what you call "midle of the week" but I consider Wed to be the middle of the week. The last PR that came out just last week was in the middle of the week on a wed. They had the Twi-Lite PR on a wed in december and the big rusty ridge pr that hit in nov was also on a Wed.
Ken clearly has no problem releasing a PR in the middle of the week....
Thats exactly what I said, theres no way for him to know if it's a buy or sell. Well unless you have access to Level 3. In anycase it doesn't matter. These trades are often times between MMs and it's simply due to them blancing books, selling off some or buying some. Also alot of times when it's high volume these are trades that they didn't have time to record durning the day and have to file offically AH. Either way it means nothing in regards to the PPS the next day and really has no postive or negative impact on the stock in anyway, shape or form.