Major General--MGJ Message Board

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Gold/Mining/Energy : Major General--MGJ

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To: RBMac who wrote (423)	5/14/1998 3:15:00 PM
From: Zardoz	Read Replies (1) of 1707

Well, yes the markets as a whole has decreased. But that has more to due with commodity deflation, and lack of discoveries, than any disaster. I'm sure we can all testify that in a bear market, noone wants to buy nothing but growing companies. And since mining stocks can only grow when they discover or stake, than the equities suffer from lack of liquidity. This gives the traders/brokers the ability to move stocks based on "anything". And a tell tale sign is the seperation between bid/ask. In a liquid market you'd expect the whole market trading around a certain price. So when the brokers/trader believe that they have maxxed the price increase, they cross trade with their cohorts, or short. It's no surprise that MGJ had 172,000 short last report. It's primarly due to the lack of investors. And they aren't coming back until someone discovers something. And this has no relation to value. Since a trader makes his money on rotation, and brokers commissions, it's only investors that make money on holding. Some VSE companies have more cash on hand than what the capitalization is worth.

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