RE: Detour GoldOne of the many ironies of investing in gold stocks is that a company at the developing stage usually has higher SP than when the company actually goes into production. There is no premium higher than the investor sentiment of "hope". We all know that Detour Gold will not be a $28.50 stock when it goes into production. Never mind what some naive analyst predicts.
The business reality of a startup company is such that everything will be - a). late in starting operating, b). cost over runs, and c). production is less than expected. All these will hurt SP big time. I have tracked many companies and compared their pre-production SP and come to this conclusion.
Anyway, SMF's latest good news PR today did not seem to have any positive effect on the SP. I'm at a loss as to why this stock seems to have completely lost the investors' favour for no season at all. The 2011 guidance is higher than 2010, but seemingly not high enough for the public's liking (at least that's the excuse anyway).
Perhaps the last "trump card" is the 2010 financial results. Profitability can always boost SP. After all this what running a business is all about.