Winzer (I got it right this time!!!) She bought the shares on the promise of the Northwestern Ontario King Bay property. The 7.5 million financing also added to her confidence. With respect to TA however, I don't think that was the case. Nevermind it being very difficult to analyze mining stocks on TA, RBD.A was on a big downtrend at the time she bought it. In today's market, I personally am very reluctant to apply any sort of TA to junior mines. In the case of RBD.A, one can only hope that there will be a bounceback in price as a result of the overpanick on Friday. However, if all shareholders were not aware of the news that RBD.A was trading again and want to dump on Monday, we may see another little dip on this week.
John - unfortunately, I have to agree with your scenerio #1, with scenerio #2 coming into play for very long term if the results are good. Just take a look at CQL which has just released very promising drill results. After the Bre-X thing, it tumbled from about $9 to $2.85. When the drill results were released (and they were really quite good), the stock tumbled to $2.50. I foresee that given the long lag in the halt trade and the general disinterest in junior mines, unfortunately RBD.A might be at these levels for a while unless there is that bounceback.
I hope however, for my cousin's sake and for you guys, that I am wrong. Thanks to Bre-X, Delgratia, Golden Rule et al, there just isn't interest in juniors anymore. With RBD.A, there is the added stigma of having been halted for over 8 months. Integrity of management may perhaps be called into question where in today's market, everyone is suspicious of everything.
Best regards,
Obie |
