The market is a strange beast Have a look back at BBX's...

The market is a strange beast

Have a look back at BBX's announcement in October whereby they reported "visible gold"

The stock ran from 4c - 16.5c on anticipation of their assays. At 16c they were capped at $32M+ with next to no cash

Subsequently their "visible gold" disappeared and it tanked, but the market rerated it big time




Compare that to NXM

NXM in their historical results at Pinnacle encountered high grade gold



Now in their recent update, they confirmed they've encountered "favorable geology"

i.e favorable geology could imply more results in line with that of historicals, which in turn would imply potentially visible gold at those grades

Yet on that confirmation to the market, NXM did not rally at all. In fact it dropped lower, further below our cash backing of 8.5c

Is management being conservative and will wait for assays (unlike other companies exampled above). Had they reported "visible gold" then the stock would easily be double digits

If we were to be worth the equivalent of BBX at it's highs, that would be 51c/share (including the cash)

The fact NXM is trading under cash backing, with those sort of comments from management about pending results make it a gift