The PDAC mining conference starts tomorrow in Toronto, Canada.
Over the years the event has caused the price of stocks falling after the event to be called “the curse of the PDAC”, as so many prices fall after the show has closed its doors!
The burning question has to be, will the “curse of the PDAC” return to haunt companies after the show this year?
In previous years share prices have dipped after the show, and people have often asked why, given the publicity generated by the show and the connections made with institutions and investors throughout the show.
I think the answer is simply that companies often release news before the show,and the share price is hyped up by promoters leading up to the news, which means the top is already in before the show!
So. once the show is over, and all buyers are already in, the price pulls bqck as there is no new interest to buy the sells going into the market.
So the curse of the PDAC may well live up to its name this year, as we have seen some strong rises in stocks that have released news recently, we shall see.