Citydi,
Clearly there is selling, since the price has been drifting downward;
granted, it doesn't take much selling to drive the price down. The lack of buying is likely due to the fact that all the people
who know about this stock are either already in it already or sitting on the sidelines. If they are sitting on the sidelines, they are waiting for something to cause them to buy. That "something" is either momentum (some people are momentum investors), or more definitive proof of a sound investment. Sometimes "proof" and momentum go hand-in-hand and sometimes they don't. Right now, with
a four week extension in the Johnson-Lett option, uncertainty about the timing of the next news release, and some pretty darned outrageous assay numbers already released, you can be sure that most rational people are confused and are in need of further proof.
I know I have stated SEVERAL times on this thread, that I doubted that this stock could sustainably trade in the teens without more convincing proof of "the mother load" as well as proof of cost efficiencies of process. When my optimism was at its peak, I felt that this stock couldn't rise above $10 without a Ledoux signoff, and even then my most optimistic price target was $15(unless an Allen and Co. financing deal was announced). I also clearly stated that that peak would be short lived and the stock would settle out much lower levels until the evidence was plentiful. At the time, that seemed feasible, since we had a lot of momentum going for us. It appears now that investors are just as skeptical and their demands for proof are ever more clear.
Do not be fooled by the "all that glitters is gold" mentality that the
extreme optimists have. This stock trades at $5.50, which is perfectly reasonable for a company claiming the greatest gold deposit in history and with ONE chain of custody hole showing extraordinarily high gold values. I thoroughly agree with Rand that the market is efficient for what is known and what is inferred. As more is known (hundreds of holes drilled and tested) and less is inferred (we THINK that 600 holes will all show high gold values), the price will rise
accordingly. When more is known about the recovery yield and production costs, the price will adjust accordingly.
Don't believe that this stock can't trade at a dollar again, because the only thing keeping it above $1 is one press release stating that the results of the last release couldn't be duplicated.
Good luck,
Doug |
