TSX:SGR.UN - Post by User
Comment by
Avocadopiton Nov 09, 2008 5:44pm
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Post# 15575317
RE: sure, 40 cents or lower...
RE: sure, 40 cents or lower...I happen to think the stock is undervalued right now. Its not being valued on the fundamentals going forward but on what is happening to gold and the liquidation of holdings by hedge funds and the like. So I'm hoping when the next and last leg down for gold happens it takes San Gold with it. I'd love 10 or 20 cents!
The chart is in a downward channel. I found out about the company on October 22 while it was still going down, and bought a little on the 27th. Then I analyzed the chart and realized it was likely to only go up so much before going down again, unless it broke out strongly to the upside. I expected to sell close to the top when it bumped against the resistance line. I sold within 2 cents of the high. Wish I'd bought more to sell.
So now I'm going to watch it fall. At a minimum I expect it to test the previous lows, but if gold does go down to $630-$640 then I expect we all will have another opportunity to buy solid mining companies dirt cheap.
Gold mines were the best stocks to own in the 30's, when deflation ruled the roost. I don't see why they won't be any different this time, once deflation takes hold of us again.
Andy