Short squeeze on GSS or short squeeze on gold? I suspect you mean gold, and given the confluence of factors, not the least of which is the change in the market from a 4 1/2 year bear to the start of a new bull, a squeeze could very well be in the cards. It is exciting thinking the implications of such But frankly, it's exciting thinking of the potential here even without a squeeze.
First, the buyer referenced in today's news is an experienced participant in this industry, and that they bought these shares so close to the market price at $.66, this is a huge vote of confidence, and sets very strong support in the current high price range just below $.70.
Second, doing this to pay off debts, clean up costs and help pay for expansion in a newly rising gold price bull market, that is exactly the time to do something like this.
Lastly, with what's going on with the strength of gold, on the verge of a massive breakout, to begin the second leg of this new bull market, the pause in GSS's price today is a screaming opportunity. I increased my position by 50%. And as I type, GSS is back up over $.70. Lovin it.
Good comments. Thanks all. I will say, the much lower average daily trading volume of AUMN does worry me some, especially if I wanted to build a large position. Some days it's pretty good, but then many others it drops way off, so not ideal.
Update: I purchased both, but the largest position was AUMN. I love its exposure to Silver, which in a sustained bull market will far surpass Gold in appreciation percentages. I also love its low o/s count. Both of these provide the added leverage I seek to maximize returns as the new Bull in Gold gets underway in earnest. There is of course much more to like about AUMN that can provide tremendous upside. I just like these two facts right now especially. GLTA
As far as highly speculative plays go in a hot market segment, potentially still very early in a new long term uptrend, I have filtered out dozens of other precious metals penny plays, and these two remain. I am struggling with which I think is better, especially on the fundamental side. I thought to put this choice out to the board and see what input others might care to share? Thanks.
I anticipate GSS resetting at an entirely new and higher price range in the coming months, and then rising very nicely as this early new Bull market in Gold gets underway. Today's GSS is different and better than yesterday's, and the market will recognize that. They already did in a little way when you look at the hart and see that the recent run up lead the Gold miners rather than followed. Keep in mind also, we are coming off an historically long bear market in Gold, and evidence of a bottom in Gold now has been tremendous, a real change in character. The timing for GSS looks good for a number of reasons.
GSS a Gold producer and turn around play with quite a bit of upside in actual production beginning the second half of this year, 2016. They have also significantly lowered their cost or production to well below current Gold prices as part of a new strategy to become a low cost producer. This news came out over the last month or s0, and no new analyst revisions yet, though I expect them.
Current price is $1.66. Coming off so long a Bear market in Gold, as Gold continues its new uptrend, this target price and so many others among the Miners will turn out to be way too conservative. I also note the opinion printed not too long ago that EXK was on its way to becoming a major player in this industry. GLTA