The drop is a compound of the poor annoucement on Mar 6, the shorter's effort, along with your friend's Bre-X bad rumor. It's a domino effect, it shouldn't have been this bad, say, BSR or Bre-X for instance, if it falls, it is not going to fall to the rock bottom because people knows what the company real assets are.
But with our friend CLL, all we have is forecast, your stock is dropping because of short term investors, flippers, and shorters, as well as people who have lost confidence in the company. So the danger lies that we have nothing to back up the company. You don't have to tell me that the stock is under-value, the bottom line is, it is a stock w/o proven ground.
Forget about other properties, to virtually the majority of the investors, they meant nothing, I tell you a year from now CLL will find millions ounces of diamond, so what? Would you believe me? The diamond mines are no different than the piece of land in your back yard. There is a difference between what you said you have, than what has been proven, submitted to ASE.
What we have here is a similar situation to Dakota or Erin Ventures, all we have is talk, and no solid results like FGX. Now if you have something like FGX, bump the stock from $18 to $34 in one day, or if you have someone solid like Kenneth Shannon or CMS to backup your company, in the case of CTQ or PFG, that's a different story. Look at EV or DAK, no matter what you do, the stock price just won't go up, because there is nothing to back up the claim. A good stock, a good company is a company that the falling price of the stock is only a small fraction, as in a fluctation of the stock, if your stock was $5.40, it falls to $4.60, that's a fluctation, if your stock was $5.40, and it is now $2.40, that's a COMPLETE ROYAL F**K UP. Wait up, take the loss, and get out. You can't let WISHFUL THINKING guilds your way.
But you are facing with a management with no track record, no annoucement as to the development in the next 6 months, who's going to buy the stock? The large brokerage firms that I spoke to on Friday such as CIBC, Yorkton, suggest that quite a bit of people will jump on the band-wagon and short more on Mon., Tues. There are lots of money made in the falling market. Personally, I am not interested in it, but the brokers themselves, as well as their brilliant advise to be given to their clients next week, will make it happens.
Remember, the term "time to average out", as in to buy more, only apply to a solid company, like Bre-X, BSR, etc. that you know for the fact that there are x million ounces sitting on the ground. |
