OTCPK:GBLHF - Post by User
Comment by
Francesco1on Mar 03, 2006 12:16am
258 Views
Post# 10454014
RE: wazz up with this?
RE: wazz up with this?samson7,
I own many stocks in the mining area and have been frustrated as well by their apparent lack of direction recently. However, I do have an explaination for you.
Let me begin by saying that the most important thing you must know is that this group will explode to the upside as soon as the junior resource market ends its current correction. Corrections like this are a prerequisite for this price explosion we will all enjoy in the future.
I am talking about the quality issues (like Mike Shaeffer recomendations) that will enjoy the highest price gains. The "reason" for this sideways trading is that there are many doubts in the marketplace as to the future price appeciation of the underlying metals that these future mines are drilling for.
Every time copper, gold and silver hit a new high, the psychology reflects the fact that the average investor "feels" that prices must be topping. This "causes" the feeling or missperception that the underlying metal will be lower in the future, so why pay up for a junior the may or may not be around in a year or so. Of cource this perception is totally wrong because we are really in a mega bull market for the underlying metals.
In time, the market place will realize that what they are seeing is for real and will then move into these stocks with a vengence.
Both big money and small will embrace these stocks like they are going out of style, but you must own them to participate.
Based on demand, this bull market in commodities will someday be thought of in retrospect as that once in a lifetime oportunity that came and went. Don't miss it !!!
The bottom line is that this is the last time i.e. the next few weeks/months that we can buy in at these bargain prices. We must continue to buy even though we are feeling frustrated, knowing that the underlying psychology is "causing" this feeling.
Hang on, it won't be long before tide will turn and we will all be complaining about the taxes we will have to pay on our huge capital gains!!!
Frank