Nothing pretty about this 5 day chart: http://finance.yahoo.com/q/bc?s=GPL+Basic+Chart&t=5d
Yeah, yeah, yeah. One day...or even 5 days does not make a trend. But falling this bad over 5 days when the price of silver keeps bolting to new highs just seems like a very bad omen. I've been trading GPL and EXK for the last few months and these 2 stocks have performed extremely well and they usually leap-frogg one another day after day in their performance. But EXK, among many others, has left GPL in the dust. And we don't have any news or explanation for this recent poor performance.
I have been lightening up on GPL reducing my holdings by 67%. Something is brewing and we can only hope some news is released soon to unleash GPL so it can achieve new highs where it should be today with current silver prices.
Time will tell but with silver prices racheting to new highs...how patient should an investor be with GPL? I don't buy puts, I never short, and I am extremely bullish on silver and gold. We have 3 upcoming events which should all be extremely bullish for PM's.
First we have the budget stalemate which probably will be resolved by the dealine, Friday. But the resolution certainly will reveal how pathetic our legislators are in dealing with this soon to be crippling budget deficit. Secondly, we have the deficit ceiling which Geithner suggests will be reached by May 15th. Once again our spineless congressmen will have to focus on the massive budget deficit in short order and agree to extend the deficit by over a $trillion just for the upcoming 12 months. Neither of these first 2 events will be good for the dollar...but great for gold and silver.
And thirdly, we'll see the Federal Reserve taking a position of some sort by the end of June regarding their QE2 and the purchasing of treasuries to the tune of $100 billion per month just to finance the budget deficit. If they launch QE3, PM's will soar. If they curtail purchases, who else will step up to buy treasuries? Dollar will suffer and PM's will rise.
And finally, Moody's as well as the other rating agencies have been inferring that they might downgrade US treasuries once they see if our Congress can get a grip on the ever-growing deficit. That's not going to happen so a downgrade is inevitable. The downgrade will be bad for the dollar and good for PM's.
So how does one position oneself for the rise in silver prices. Hopefully, GPL can kick it in gear and not fall behind the pack.
GPL has 121 million of outstanding shares and 111 million shares floated in the market.
Is the 5 million that was transacted in the bought deal (and is possibly being price manipulated according to another poster) really enough to account for all of GPLs woes ?
I've got a lot of skin in this game too, but somebody smarter help me out here...
Only issue GPL has is their new stock sale at $4.20. When that was announced the share price was well above that. No one wants to be undersold. how much of that stock will they sell when share price is less?
Come off of it. Miners like GPL and EXK are momentum plays, plain and simple. Yes there is value, but let's get real--these start to move exponentially in the short run because people pile on margin or just keep buying more and more and then things snowball. When that reverses it gets nasty. What's more, you have people just swapping out of GPL and into AG and EXK immediately--opportunity cost I guess. Why take any chances and not just jump on the hottest stock, right? Of course, the lower GPL goes, the more that question starts to dig at shareholders.