RE: Buying oppTrying to find the reasonable value here but the story keeps getting worse now. I don't really see too much upside here for now from where OGC is currently sitting.
I mentioned before that it would become more interesting below $3, and I still feel that way. But the question is, do you want to be buying at $2.90 when the upside is only 20 cents? Downside risk is probably greater than upside potential still, which is why I'm still out on this one.
Gold seasonal strength is also over. Gold holding but not moving higher for now.
Story got worse with politics involved.
So I think this has to fall closer to $2.40 before the upside potential starts to out-weigh downside risk. At least from those levels you'd have some decent upside potential in the medium-term as long as costs don't continue to sky rocket and production doesn't fall to the low end of their guidance. 260,000 oz for 2011 would be another big disappointment as far as I'm concerned.
Simply put, this isn't a bad play below $3, but there are way better options right now if you actually want to make money instead of holding dead money.
Driving season is coming and oil will be over $100 I'm betting, I agree with TTSB that EE is a good play right now and I'm trying to get the best prices there before it heads for a market cap in the 250 million range in the next short while. Could be an easy double there in short order. Where as OGC has no chance for such upside unless gold goes crazy.