TSX:LSG.DB - Post by User
Comment by
TedOwenson Jan 20, 2011 12:57pm
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Post# 18002442
RE: RE: RE: RE: POG -COMMODITIES ETC.
RE: RE: RE: RE: POG -COMMODITIES ETC.If the price of gold going down a few percentage points would have such a dramatic effect on the share price of LSG then there is a definate problem with either the way that the market is valuating the company, or with the fundametals attached to the company itself that is driving its perceived value. Once a company starts transitioning into a producer the hard realities of tangible asset value will hold it at bay and that's what appears to be stagnating LSG over other issures trading at higher prices but with no resources to show for itself.
LSG is not a speculation story anymore and until it is capable of getting past the single project 3 million ounce level that the market expects to see before classifying the issuer a serious story, this valuation on this play is going to be tighly held to the price of gold. While gold will go up gradually over the coming years. it wont allow the speculation drivers to gain an advantage which is still where the juniors hold the advantage for the day trader crowd.
A few more back to back Thunder Creek type holes could change the story very quickly.
T.O.