Shorts getting it low enough it may be time to buy more
Short numbers are up in the months prior to the election with days to cover up almost double from roughly 3 days to roughly 6 days to cover. Looks like these hedge funds are the tail wagging the dog as we go into expiry and hit the convert price near $1.65 as I recall.
If the stock's job is to discount future events, then GSS is trading at a discount here, as there are certainly more things that can go right with this company than wrong ... at least more so than at any point I can recall. The costs are trending lower, the grades are trending higher, as are the potential reserves, as are the areas for new pit development medium to long term.
Prestea South looked forever lost, but that may kick into action in 2013.While it's not certain, it looks more promising than ever. Wassa looks like it is going to be producing much, much longer, and at higher grades, than ever was expected. The oxide mill at Bogoso is opening up new production and flexibility. The huge stockpile of ore is going to guarantee efficient use of that plant overall for a long, long while.
Perhaps the most important aspect is that management is beginning to hit on all cylinders, whereas previously they were feeling in the dark for the ignition slot. Management is key, and management is on track IMHO, something I've never really promoted before.
We now have reserves and management and good trends. Plus, gold is turning into the ultimate currency in the "real" world. Time to get real here.
Shorts In Gold Nothing More Than A Few Large Hedge Funds
November 14, 2012, at 1:27 pm
by Jim Sinclair in the category General Editorial | Print This Post | Email This Post
My Dear Friends,
Most commentators and participants in gold shares are under the assumption that the short interest is made of thousands of hedge funds, from the smallest to the largest. That is totally incorrect.
The short in gold shares is very concentrated in just a few large hedge funds with a few hangers on. This is why when there is no fundamental reason for selling they are manipulated against the gold price improvement, just like today. This is to play with your emotion.
The better companies from exploration to development and mining continue to increase their gold assets, knowing they are collecting mined and mineable money.
We will overcome this multi-year concentrated short on the gold shares that is totally illogical for good companies.