Might seem that it is falling and it may fall more as we go forward, but LSG was in $0.20's and $0.30 in May and June of 2013 so call it $0.30 and now $0.76 plus. 0.76/0.30 -1 *100 = 150% rounded. Gold is down obviously. The point of the post was to illustrate over the period since the lows for LSG, the stock has done well, especially when compared to their primary product price. Just another way to look at the stock's performance when over the recent past we have seen a drop from the high of $1.14 to current levels, or a 33% drop which certainly hurts.
LSG seems falling further my friend. Gold is going below $1100 appears to me . Traders are exiting out seems.
Sentiment: Strong Sell
I was wondering about my investment in LSG. If you are disappointed, I suggest you look at a daily chart from May 2013 of both gold and LSG. Gold is down about 40% and LSG is up about 150%. My average cost is $0.89, which was disturbing, but having a squint at that chart gave me more confidence that we shall be sailing by the dollar islands in short order. Set the table, get the glasses and rum, we are near party time.
I am not short but took painful decision yesterday after waiting 2 years and averaging on dips and my avg was around 0.75 cents. I put a stop order yesterday @ 0.85 which got executed today. When this stock did not run up with gold prices, I was very concerned. This is something to do with LSG buying penny stock gold miner seems. If you look at the chart, stock is not going any where....If it closes above $0.90, I may consider buying again but very likely LSG go down to 75 cents and possibly below range soon. Anytime, company buys another company, there will be integration issues to deal with and stock goes down. IMHO
Sentiment: Strong Sell
I think we are seeing a sell now, take profits or cut losses and wait to see how things shake out. In the broad market they are shaking down. Clive Maund has called for a deflationary market crash within 3 months and it could commence in a few days in an article on Safehaven punctuation commercial today. Gold is up while silver is down suggesting skittish market participants. LSG will respond to rising gold prices very soon, when the knee jerk reaction of sell any stock is replaced with more rational buy gold and gold in the ground (gold stocks). We should see a spectacular run in short order.
Yes, I have been noticing. Not sure good or bad step but I got out today. My stop order executed @ 0.85.
"My second concern is that the central banks could fail in their efforts to control the economy." Interesting statement you make, I was thinking along similar lines and incorporating the federal government into the thought process. EPA is putting a strangle hold on coal and now oil, the state department got into the hindrance act via blocking the Keystone Pipeline which had the further impedance of indirectly assuring funding for our enemies. Justice department has ben on a witch hunt wrt banks and fines, and getting a permit to do anything in the way of manufacturing or agriculture is almost impossible. For example, where were the shovel ready projects? Personally, I think the FED and government ought to get out of the control business as that only makes for misdirected investment. It is time for us to bite the economic bullet, take our lumps and get back to normal. That is what was done with the great downturn in in 1919 and within 18 months, the roaring 20's were underway. That is history kept under wraps because it would expose the fraud of the depression where the feds controlled everything and it took a war to overcome their "good deeds".
I have been wondering for a long time about the FED and other central banks ability to control the majority of the world economy. After 9 years of not raising rates, I really wonder what going back to a 6%-7% mortgage (over the next few years) will be like. Housing prices will decline, stock prices will also decline and bond prices will decline as well.
People have put too much money into multiple asset classes at very high prices. As interest rates return to normal, I believe gold will jump. The jump may not be related to inflation, but it may be related to it being cheap.
My second concern is that the central banks could fail in their efforts to control the economy. If that happens, then there is very little that can be done because the economy has been in low interest land for so long, that more money printing will have little effect on the economy. At that point, gold could seriously jump.
The third concern, and this is long term, is about developed economies being in such a level of debt that an event will happen that will be large. If you think about it, Detroit, Puerto Rico and Greece are relatively tiny economies that were no longer able to pay their debts. If a large economy needs to monetize debt because they can't pay, that will cause people to re-evaluate the risk premium the want from sovereign bonds. Developed economies are continuing to get further into debt. China will join the club at some point too. They want "social stability" and as their yearly economic growth cools, then they will need to borrow to pay for services the people need or risk "social instability".
If the FED does not raise rates in September, it's going to get interesting through the end of year. That would only give the FED December. And if not then, nothing left to do but SMILE, SMILE, SMILE!
It has taken a while, but most of the reports by institutions on their LSG holdings are finally reported on the NASDAQ site. Increased positions are 33 institutions and 36,435,172 shares, decreased positions are 23 institutions and 38,488,435 shares and held positions 15 institutions and 58,179,675. There is not too much change, but it is encouraging to have 10 more holders that will potentially increase their holdings as time goes on and they become more comfortable with this great company and the great story they have to tell. A shot in the arm wrt gold prices would do wonders for share price as well.
One concern is the potential for another share price depressing announcement by management. We know one is on the horizon as the IDM mining press release had 25 million warrants (not sure if terms were disclosed) that will either need to be exercised or written off. If exercised, it might be because the company was wildly successful, That would be helpful and we could all sit back and talk about the great management we have and their laser sharp foresight. That would be cause for discussion over a large mug of rum of course.