Price action - Goes up, goes down, for me it is irrelevant
What is relevant is Colossus giving an update on the specifics, what needs to be done, financing, when they can complete construction, timeline for start producing. That is relevant! Obviously, I think they will be successful, hence why I am here. Certainly it is not a "done deal" on this technically challenging project otherwise they would laready be producing and the stock would be in the dollars, not the cents.
However, (as I have stated before) grades are JUST TOO GOOD, to not take a risk on this one!
The market is fickle and will often value stocks based on feelings instead of facts. At one time COLUF was trading at around $9 when all there was was some bore samples showing high grade ore. Now, after all the millions spent on infrastructure and development the price is down to pennies. Why? The minerals haven't gone anywhere, they're still in the ground, so there must be another reason. Not long ago the company announced a schedule slide of one quarter due to some dewatering issues, expecting production start-up by the end of 2014. The most recent update slides the schedule out another 2 quarters which made the weak hands drop their candy and depart. The shakeup in management no doubt added to the exodus.
Obviously the dewatering situation turned out to be more challenging than the original report suggested, unless they've run into other obstacles we haven't heard about, as the start of production has now been delayed by a total of 3 quarters. Impatient investors always lose, they shouldn't be placing their bets on start-up mining ventures. Having thrown their shares away for pennies has given those with a longer term view the opportunity to substantially reduce our average cost per share. The real value is still there, in the ground.
I encourage you to not be a traditional long here. There doesn't appear a near-term catalyst that would make it go dramatically up this month (and if there was, would the market listen?), yet there is potential for a dilutive financing, or something the market will construe as negative, at some point.
Calico, btw, sold a property for 35 million yesterday, and its market cap ascended only to 9.8 million on the news. Belo Sun has actually dropped now on news of its long-awaited permits too. If the "easy money" has already been made here, then reward yourself at some point, and look for another entry point. I write solely from a perspective of wishing I had respected profits from far too many miners in July/August, and from a hope that good advice (if I am ever to give it) might one day give me some good luck in these markets too.
Thank You, respect the advice. Perhaps you are correct, there is a better entry point. However, this is presently so low, that knowing me I will but in higher so will probably stick this out (unless of course COLUF says/does something to give me a reason to sell). At this point LOVE the risk/reward ratio!