EVG insights from poster "ogi" at Silicon Investor:

To: heinz44 who wrote (15765) 10/10/2009 1:38:45 PM
From: ogi 6 Recommendations Read Replies (1) of 17585

Heinz, I thought I would use your letter to Dr. Quinton Hennigh of EVG as background for some infill if I may.

I have been in touch with a Dr. Hennigh several times this week
and sent my own email regarding the relentless selling and the rumours of an impending PP. I know there was a posted interview
of Robert Bick from the Toronto Cambridge show where he did talk about "future" financings. That interview was posted on Agoracom at one time I do not know if it is still there. Nonetheless, the fact remains that we know at least one member of management had publicly acknowledged they had thoughts of pursuing a financing in the not too distant future. We can also assume that any company with EVG 's success has been courted by multiple financial concerns seeking to do such a financing.

In my opinion there is a direct connection between this public mention of future financings, the relentless pummeling of EVG share price, and the rumours that this price action was anticipating a financing which undoubtedly fostered even more selling. Add TA to that mix and you get...even more selling. The main thrust of my email to Dr. Hennigh was simply that EVG management have grossly mishandled the issue of financings particularly in light of their very strong current cash position and $15 mil in warrants expiring in the new year.
I urged the EVG to strategically plan now for financing well into the future and consider doing a bought deal at a premium price with a major as an option to be given serious consideration.

The same price action that has so frustrated us has also confounded Dr. Hennigh, with the flood of shareholder complaints he and others made a concerted effort to investigate what might be behind the flood of sells, which we here have seen for ourselves with Anonymous a NET seller of 7,132,600 EVG shares between Sept 10 and Oct 10. Dr. Quinton
believes they did identify a particular "motivated" seller and EVG have taken steps to address this. I do not know what steps they could have taken or may have taken. Who this person/co is or exactly what the motivation was I don't know either. As no PP has been forthcoming despite an EVG exec acknowledging they were investigating the idea, I can only guess it is someone that may have been interested in a PP and in its absence subsequently put pressure on EVG for their own purposes.



We have had a confluence of factors that have taken EVG shares down of late. 1. a natural correction from a big price spike. 2. possible unrealistic expectations for Carlin that were not met. 3. a motivated seller who purposely put pressure on the stock 4. Ta analysis selling after EVG could not hold support levels.I believe the worst is fundamentally now over and even if others believe that TA would have predicted this retracement
from the highs, it seems the current TA consensus is also that EVG is now off its bottom. There will be approx $10-$11 mil left in the kitty after drills stop turning. Dr. Hennigh tells me he DOES NOT support doing any financing right now.

Rattlesnake assays will be coming for the next few months.
I look forward to them, they alone will tell me the progress EVG is making. In the meantime EVG mngmnt has been listening and I am glad so many here wrote to them.


Cheers,
Ogi