If you get in at 17 cents, you lose quite a bit when it drops to 13 cents per share.
Personally, I'd just invest in NUGT if you want a good daytrading stock. The jumps are more reliable. On the day Bernanke speaks next, it likely will go up.
If looking to go long on a cheap miner, there are lots of gold miners whose stocks have been pummeled but which have projects that can still make money in a sub-$1300 gold market. Lydian and Belo SUn have been crushed for political/permit issues, while a number (Pilot, Almaden, Vista, Kaminak) have been crushed for reasons I don't fully get. Also, miners like Gold Standard Ventures and MIDAS are good, safe long plays -- majors want them, it's just a matter of when.
And so many smaller miners with nice but modest-sized projects have greater upside too. Red Eagle had only a 12 million market cap before Friday, getting crushed over a PEA that proved it could make money at $1000 gold -- but it finally jumped 53 percent on Friday. Balmoral was just 26 cents in June, and LSG was only 17 cents at one point in June. San Gold once had a billion dollar market cap; now it has a 50 million market cap and new/better mgmt.
Anyway, I follow this stock, and am always curious if anyone really believes in $2000 gold prices next year (or soon) -- but if THM dropped, little by little, to 17 cents, then it could just as easily just die as have a deadcat bounce.
Maintains an Outperform rating on stock. Rating was made on October 10, 2013. (And yes, I doublechecked. Rating was for Vista Gold, not for Vista Equity or some other company named Vista.)
I assume you are speaking directly about ANV (and I am bullish ANV) but this is terrible generic advice, when applied to miners. Miners have the potential of jumping ten-fold (Colorado Resources, through the first half of year) and dropping ten-fold (Colorado Resources, through the 2nd half). There is so much speculation involved in almost every aspect of gold stocks that is easy for them to be over- and under-valued -- and sometimes their story lines have changed so much that they are more overvalued when they are at their cheapest. I wanted to invest in RVM ten days ago, and I thought $1.10 would still have been a good price; now, after its latest Troy update, I wouldn't even consider the stock for anything over 50 cents -- and then, it would only be for a dead cat bounce.
A more conservative viewpoint from a recent interview on theaureport:
"The continuous printing of money by the U.S. will definitely be beneficial to the price of gold, but the problem is that this new money will cause inflation only when the velocity of money rises again. In a normal economic cycle, this happens between 24 and 36 months, but now the velocity of money is much lower than normal. I think we'll see inflation rising 48–60 months after the printing started, that is, within two years from now. And that will indeed benefit the price of gold."
Their twitter acct keeps investors/interested people well posted too. I personally liked the annual report a lot, and they seem to handle their financial issues better than many other biotechs.
Stock jumped 53 percent in Canada today. Now price is 40 cents (Canadian).
Second the recommendation to do "what you think is right". If you think this is undervalued (and it is), realize it eventually will be fairly valued. Market won't tell you when, but it will eventually happen.
Just an fyi that Red Eagle (mentioned in above post) jumped 53 percent today. No shares were traded in US, but price is now 40 cents in Canada.
As proven here, and throughout my personal trading history, I definitely lack the ability to time when undervalued miners reach some approximation of fair value, but it seems to happen eventually for those willing to trust their thesis and hold a stock long enough.
Anyway, best of luck to all...
News Release Issued: Oct 18, 2013 (2:09pm EDT)
Vista Gold Corp. Announces The Closing Of The Sale Of The Los Cardones Project
DENVER, Oct. 18, 2013 /PRNewswire/ -- Vista Gold Corp. ("Vista" or the "Company") (NYSE MKT and TSX: VGZ) announced the closing of its previously announced sale of the Los Cardones gold project in Baja California Sur, Mexico, to the Invecture Group ("Invecture") and RPG Structured Finance S.a r.l. (together with Invecture (the "Purchasers")) for US$13 million.
As previously announced, Vista agreed to sell 100% of its debt and equity participation in the Los Cardones gold project to the Purchasers for US$13 million (US$7 million of which was paid today and US$6 million of which is due by January 30, 2014). The Purchasers have the option to elect, in their discretion, not to make the second payment of US$6 million, in which case, Vista will retain the US$7 million received today and the project will be returned to Vista.
(this was found on stockhouse)
A devastating report by Joseph Fazzini of Dundee Capital Markets has seen the share price of Colossus Minerals (TSX:T.CSI, Stock Forum) tumble 11% down to $0.61, continuing a fall from $0.86 earlier in the month.
Already under pressure from technical challenges in its Serra Pelada project in Brazil, Fazzini held nothing back, stating “given the technical challenges encountered (brought on by water and challenging ground conditions), realizing [potential opportunities] now appears a less likely scenario for the shareholders of CSI.”
It continues, “In the case of CSI, we believe the options for raising new capital are few and expect that any future cash injections would likely be arranged under highly punitive terms. The prospect of adding further financial burden to what is already a leveraged capital structure in the context of a soft metal price environment has us concerned.”
“Given our lack of balance sheet comfort, management’s failure to budget and operational challenges that remain, we are downgrading CSI to a SELL (from Neutral) and reducing our target to $0.50 (from $0.80).”
From a good interview on theaureport :
TGR: You predicted in May that gold would trade between $1,250–1,500/ounce ($1,250–1,500/oz). You have been proven correct. Where does gold go from here?
TL: We've had very strong resistance at $1,410/oz, and when gold tried to break through just a few weeks ago, it dropped right back to the $1,300/oz level. I believe that gold will continue to trade sideways from here: between, let's say, $1,200–1,410/oz. I'm not sure what kind of major economic catalyst could result in a push strong enough to break through this resistance.
TGR: The Federal Reserve has backed off from tapering quantitative easing (QE). Will this raise the price of gold over the long term?
TL: We've seen QE over the past three years, including the past two years when gold fell in price. The continuous printing of money by the U.S. will definitely be beneficial to the price of gold, but the problem is that this new money will cause inflation only when the velocity of money rises again. In a normal economic cycle, this happens between 24 and 36 months, but now the velocity of money is much lower than normal. I think we'll see inflation rising 48–60 months after the printing started, that is, within two years from now. And that will indeed benefit the price of gold.
16:19 $ .45 High 1,000
Seems to be falling to Colombia political policies that will be harmful to many miners (who don't own their land outright). Miranda appears among the affected. Check out thom calandra's updates via twitter or his newsletters (found for free on Stockhouse).
Colombia politics might hamper some forward momentum though. Thom Calandra (articles free on Stockhouse) is writing somewhat in-depth on the situation many who do not fully own their properties are now facing.
Gold's jump apparently came as a result of the Dagong Global Credit Rating Co. cutting its credit rating for the U.S (from A to A-). Dagong is a Chinese credit company.
I assumed (incorrectly?) that they were sales, as they were almost all orders at the BUY price, not the ASK price. (Only about twice during the first hr of trading or 2 was there even a bid at the ASK price.) Sometimes the BUY price was more than current share price, hence the perception it went up on occasion.
Price Size Mkt Time
f $0.4457 100 NYE 10:01:52
f $0.4456 100 AMX 10:01:30
f $0.4456 100 AMX 10:01:13
f $0.4456 100 AMX 10:00:52
f $0.4456 100 AMX 10:00:30
f $0.4456 100 AMX 10:00:13
f $0.4456 100 AMX 09:59:52
f $0.4456 100 AMX 09:59:30
f $0.4456 100 AMX 09:59:13
f $0.4456 100 AMX 09:58:52
f $0.4456 100 AMX 09:58:31
f $0.4456 100 AMX 09:58:13
f $0.4456 100 AMX 09:57:52
f $0.4456 100 AMX 09:57:30
f $0.4456 100 AMX 09:57:13
f $0.4456 100 AMX 09:56:55
f $0.4456 100 AMX 09:56:31
f $0.4456 100 AMX 09:56:13
f $0.4456 100 AMX 09:55:52
f $0.4456 100 AMX 09:55:30
f $0.4456 100 AMX 09:55:09
f $0.4456 100 AMX 09:54:50
f $0.4456 100 AMX 09:54:28
f $0.4456 100 AMX 09:54:08
f $0.4456 100 AMX 09:53:51
f $0.4456 100 AMX 09:53:30
f $0.4456 100 AMX 09:53:09
f $0.4456 100 AMX 09:52:48
f $0.4456 100 AMX 09:52:27
2014 will be as bad or worse than 2013 for junior explorers, Miranda Gold CEO Ken Cunningham informed members of the Nevada Mineral Exploration Coalition Tuesday.
Nonetheless, Cunningham, Roger Steininger, NuLegacy Gold COO, and analyst John Kaiser of Kaiser Research Online suggest a number of junior companies with Nevada gold exploration projects are in a position to survive the financing downturn if they are willing to employ certain managerial strategies.
In a strategy aimed at raising money through unique exploration ideas, Cunningham is cutting staff in Miranda’s Nevada office to concentrate on its Colombia exploration program.
Junior companies need executives who are connected with the financial community to survive, he observed. Cunningham credits his relationships with power players in the financial sector as “very critical” to Miranda’s survival during tough financial times for junior explorers.
Noting that very few brokerage firms are writing checks for mineral exploration, Cunningham observed that the remaining investors are interested in hard assets, companies which are potential takeover targets, and have some cash in the bank.
Cunningham explained that junior companies must be prepared to spend $500,000 annually to simply list on the TSX-V and must maintain a minimum $1 million exploration budget. A budget of at least $4 million-$5 million is needed to go public, he observed.
If a private junior explorer cannot raise $3 million to $4.5 million in financing, Cunningham warned that company should not consider going public at this time.
Many underfunded juniors will fail due to lack of financing, a situation which may prove good for the future of gold mining exploration, he suggested.
Joint ventures with senior gold producers as well as joint ventures with other junior companies are simply not working at the present time, Cunningham said. Alliances between junior and senior mining companies are also not doing well, he added... (more at mineweb)
ASK keeps getting lowered on BUYs, so it is still being controlled by shorts. Naked shorting, I suppose, but I'm not a daytrader, etc, and claim no expertise on understanding how market makers work.
As one of the furloughed, I watch this stock too closely these days, but the stock just seems a toy for some folk with big pockets right now. It trades now at about the market cap of THM. (And traded less than THM when the PPS was 42 cents per share.) I reckon we'll get a press release tomorrow re: Los Cordones, and then we'll see if there's enough in the market who liked that transaction...
BTW, lots of good exploratory miners available for ultra-cheap right now. Pilot, Colorado Resources, Belo SUn, Red Eagle, and True Gold are among those I'm personally considering or-reconsidering (as with Red Eagle and Belo SUn). GSV jumped 50 percent last week, and seems to be losing about half those gains this weeks, but it's among the few exploratory miners whose PPS will likely do well (regardless of gold prices, etc). I'll likely pick up more of their shares too, budget permitting.