Chesapeake Gold Corp (CKG)

[amarksp]

tend to agree that CKG is overvalued, but Randy runs CKG just like Francisco, i.e. like a bank...!!@!, and substantially different than all other gold explorers that are dependant on PP for funding. With CKG, interest income funds all exploration and other expenses, if it utilizes same business model as Francisco, and it likely will. If POG goes ballistic and drill results satisfactory, then and only then will CKG raise more money (i.e. at higher CKG stock price, e.g. over $10) to generate more interest income to fund more exploration/development, again like Francisco.

Thus, there are only 2 ways CKG will decline substantially in value:
1) CKG does not hit on its initial exploration drill results.
2) CKG share price rises substantially in price and Randy decides to issue a new PP.

Given CKG business model, i.e. run like a bank and CKG actually has positive EPS via interest income, it truly is unique in the gold exploration industry and does not participate in the Canadian 2 Step PP Game.

I am not buying more CKG at this price, but if I owned none I well might. Also, given CKG is one of my larger positions, I may well sell 25% or so if/when its first drill results come out positive. CKG may well be overvalued right now, but it will become even more overvalued if they have decent first drill results...