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Seabridge Gold, Inc. Message Board

  • investora2z investora2z Apr 24, 2013 1:09 PM Flag

    $9 level is crucial

    Last few days have been positive. Looking at the long term charts, the current levels are crucial and a dip below $9 will lead to a deep cut to $7 (2008 lows). Presently, many gold companies are trading around 2002 levels. SA is trying to take support at $10 but the volumes have not been supportive of a strong rebound. It is trading well below the short term averages, and the declining price of gold has severely dented sentiments for the entire sector. The company which works on the basic model of selling / entering into joint ventures properties acquired at low valuations, is always on the lookout for prospective buyers for its main properties, Courageous Lake Property and the KSM property. It had sold its Mexico property a few years back. This model makes the inflows extremely intermittent. Just like these three properties were purchased during times of depressed gold prices in 1999 at low valuations, Seabridge can also be in the lookout for new acquisitions now. Stakes in development stage companies like Bullfrog Gold (BFGC) are available at low valuations and may help SA in the long run. BFGC, which has gold and silver mines, declared good drilling results and the mines are expected to have very low cost of production. BFGC is also looking for strategic partners. Surely, other such companies are also scouting for investors and SA should keep its radar ready for such opportunities. Recent equity funding obtained by Seabridge has been at a significant premium to the current market price and it surely has sufficient cash to go hunting. However, the immediate future of the stock is dependent directly on the company's ability to find investors / buyers for its two main properties. That event will be a huge trigger for the stock. Of course, a rebound in price of gold would help the entire sector and turnaround the negative sentiment.

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