Hi Amarksp!
Lets just say I am jaded enough now that I do not just take it as gospel whatever management says. I do not want to prolong this debate and rehash all of the breakdowns (no pun intended) that I pin on their mistakes or bad decisions, or failure to properly execute the business plan. In the first month of Q4 the company reported less than 10,000 oz of gold production. However we chose to stretch out the timeline, that is still well below their own guidance from earlier in the year, and from the CC at the end of Q2. Like you, I have chosen to look ahead now, and I am giving them one more quarter to get their act together, or at least demonstrate that things are headed in the right direction.
Judging from the trading today, it sure smells like short covering to me. I know that everytime a stock goes lower, its easy to blame shorting. But it would not be the dumbest move in the world for some fund to short the hell out of AGI late last week after that financial report, and then cover after the stock has found support. That would account for the overly severe market reaction, and perhaps now we are going to trade around $6 until the PM sector shows strength and perhaps some positive news comes out.
BTW, I agree with you on GAM too...
cheers!
COACH247 |
