I have been following this one since Dec 2009when I missed the entry at $1.20
I don't know what to think right now. Seems like a great buying opportunity here. The market is very irrational at the moment. All the fear and panic don't seem to care about the fundamentals at all. By the way, the fundamentals look really good for CRK. I don't like the chart though (5 months of steady decline).
Here is what Peter Grandich has to say on his blog
https://www.grandich.com/ about the current market situation:
"For all practical purposes, the last hurrah of the “Don’t Worry, BeHappy” crowd died at the U.S. stock market close today. I think its safeto say the eye of the storm has passed over Wall Street and the second,much longer part of the storm has arrived. The nonsense bull market many claimed was born in March, 2009 diedJune 29, 2010. We’re now in the final stage of the scenario I first began to paint backin October, 2007. I anticipate a long, drawn out stock market thatmirrors the Japanese stock market from 1989 to now."
He says to hold on to precious metals stocks. From my experience of 2008 crash, precious metals stocks fell together with all the other stocks but then made a spectacular recovery (T.NG up 1000% in a few months) much quicker than the rest. But that was then, when POG was around $850. The logic here suggests that with POG $400 higher at $1250 and production cash cost of around $600/oz or less, gold producers with established cash flow make a hell lot of cash and, therefore, should do very well. However, when there is a selloff, the "herd mentality" doesn't seem to care about great fundamentals and people, due to panic and fear, lose their rationale and make really dumb decisions like selling Nova Gold at 50 cents (2008) just to see it hit $5 few months later. Hope this time will be a different story. Opinions welcome.
Art27