What a coincidence. I bought it at 21c today as well.
The only difference is that I bought it fresh as I had no previous position in it.
Actually I was waiting for it to fall down since last December - after that road show they had in Toronto.
Today's session reminds me of 11/17/2008 when it hit an absolute bottom on high volume.
I think it was THE bottom today. Gold is just about to turn. CGR will get out of this hole.
If you paid attention reading this board or, even better, did own research, then you could know the reason for “the crazy discount price” here. It is neither crazy, nor discounted and, by the way, at the moment it is not linked directly to poor management. It would be more precise to say that for many years poor management policies created opportunity for sad ending and now when it’s arrived finally (powered by almighty market) , it is too late for management (good or bad one) to do something; it is essentially beyond management control now.
Shortly speaking, this horse is about dead by all generally accepted medical symptoms (earnings and debt). It is needed in 20% increase in gold price (based on today’s closing) just to stay alive (break-even) and in this case it would be able to ask lenders for re-financing next winter. It goes nowhere (i.e. nowhere good) in all other gold scenarios (less than 20% increase).
It means that in case gold really goes 20% up soon then, most likely, this stock will be able to keep 20 cents level. Imagine what kind of gains could be achieved in healthier gold equities in the same (gold 20% up) scenario. It explains easily why this stock doesn’t participate in sector rallies.