TSX:SGR.UN - Post by User
Comment by
franzneumanon May 24, 2008 4:44am
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Post# 15106296
RE: Not Impressed: SAN made Pessimist
RE: Not Impressed: SAN made PessimistThis is a valid concern but I believe it is misplaced at this time.
SGR has been a rag doll for traders for years, as the chart amply demonstrates. However, the volume is out of this world over the past week, especially on Wednesday which was a record level of volume at ~8M shares. The buying was taking place in enormous blocks pushing up the highs.
That kind of buying is not normal. It is only found where big players feel that there is big money to be made. These aren't day traders, that's for sure.
Why the change? I'd say it's because it looks like SGR has found another major gold deposit that will greatly extend the resources for the existing operations. The previous Hinge results were very encouraging, but these ones are the best yet and very rich.
It should also be noted that the previously released results for this new zone were released into absolutely brutal market conditions and especially for the juniors, which were scorched in the first quarter of 08 with few exceptions. That 'correction' appears to be over and the continued phenomenal results at Hinge cannot be ignored.
Hey, it could bounce back off today's price pretty quickly, but I'd say that the funds and institutions that were buying up 100s of thousands of shares this week won't let that happen any time soon. More results are on the way ...