RE: RE: RE: My estimate PositionTrade
The market often takes the show-me attitude, and they may need multiple show-me before they can be convinced. RGX already did the metallurgy before the qualifying transaction, and announced the metallurgy results in the middle of 2010, but still many people still claimed "there is no metallurgy". Furthermore, they even cited that "no metallurgy" as the reason that drilling results are meaningless. Even after Dehn repeatedly said in his interviews that the process works, low cost and so on, the market still said "no metallurgy" until this month.
Now, if this metallurgy issue is over, what happened to the previous fantastic drilling results released eaerlier? 190 meters of 17 g/t? Another gold company just released their own version fantastic results, they have less than 1/4 of the length, and 1/3 of grade, and they were shouting for joy. But RGX has 4 times of length and 3 times the grade, but the market had no reaction? It is time for the market to recognize all the fantastic drilling results already obtained in 2010.
After I presented the fact, some simply said that you are dealing with a venture company (very common reactions from various posters). True, we are dealing with a venture company stock, but large companies do not come from vacuum, they often grow from small companies with a big potential.
Also, it is your interpretation that recent buy not coming from people who bought in for production. Your guess is as good as mine, thus you have no right to claim that I am wrong, nor do I do claim that you are wrong.
But let us look at the facts carefully, I use OBV and money flow indicators (such as SVMA) to see the money flow, and RGX has one of the highest money flow among thousands of stocks tracked. Only 2 Canadian stocks have higher accumulation (SLI and GBU), in other words, among Canadian stocks tracked, RGX has 3rd highest money flow into it. Also GBU seems to have one-day event, not sure how reliable it is, but SLI and RGX (and others) have shown very significant money flow into it with waves of buying. The buying is earnest and aggressive.
If we take a long term view, RGX has the greatest money flow in the last 2 weeks than any time in its history. RGX OBV is 1152 versus about 1000 (10%) 2 months ago, money flow is 0.05 versus 0.01 (400% increase!), SVMA jumped from 0 to 12 (from -2 initially)! Check technical indicator reference for their meaning. But the conclusion is clearly: the buying is really aggressive and real, and this indicates that price is going to be much higher.
Just for comparison purpose, a U.S. stock MITK, see its money flow indicators. the stock has jumped 6 fold (500% increase) in 6 months, but its SVMA has jumped from 0 to 2.5 only! If SVMA 2.5 can have 500% increase in stock price, what do you think SVMA of 12 will do? Also SLI had SVMA of 8 when it jumped 1000% earlier in 2010.
We have posters here indicating that blocks of 500K shares, 1M shares were traded, without price drop, during the last 2 weeks. Some posters even sent me emails saying they bought a large number of shares. This means strong hands are buying RGX aggressively. They are confident that this is going to be much higher.