PINL:VLTAF - Post by User
Comment by
ALLEN4on Mar 21, 2012 5:39pm
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Post# 19702373
RE: RE: RE: HOLD!
RE: RE: RE: HOLD! I agree. I read some advice somewhere that one should not let the markets tell you the value of a security, but rather one should value a security independently of the market and then use the market to your advantage.
But I think if you want to put it in terms of the market saying something today, I suggest today's market is expressing that it has not much confidence in the longevity of the gold bull. Yesterday the GDXJ hit an annual low. Some great gold stocks including IMG and others are hitting annual lows on a daily basis. BSX came out with some great drill results yesterday after market close, but you would never know it from today's action. So I do not believe the action today is anything specifically related to VTR. Because VTR has a low grade deposit which is economically viable with a relatively high POG, but not so much if the POG fell back to 6 or 7 hundred dollars, I think the market is telling you that it thinks there is a possibility of the POG doing just that. And of course anything is possible. But if I follow the advice noted above, I do not let the market tell me the value of an asset, but rather use the market to my advantage, which in this case would mean buying more shares.
Remember also that VTR has a habit of a two or three delayed reaction to good news.