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Longford Energy Inc V.LFD



TSXV:LFD - Post by User

Post by Bizmaticon May 21, 2011 11:36am
407 Views
Post# 18610720

zion

zion

The reasont this is taking a beating is because half of the shares are denominated in USD and nobody in their right mind in the US, at least not institutions, will have their investments in USD denominated equities - in a small stock to boot.

That is what you are seeing in the price, so the price is not going down in fundamental terms, only in nominal terms.

So the invisible hand bias is taking licks off this one forsure, but that does not change the fundamentals. Currencies come and go, but hard assets get consumed. The beauty of this stock is that it is also pegged to the CDN price and that is not reflective yet. If it were pegged to gold or silver, this would be, well what ever the reserves say it is.

HOW can this stock be trading right now 8% below the USD value, that is seriously 10% difference factoring in FOREX.

Total distortion of the USD market right now to try and change sentiment to bearish and the end of the QE2 cycle.

In manipulative times like these, those who stick to fundamentals and forget Mr. markets sentiments will prevail.

QE2 will only raise interest rates in the USD and that will choke off all bloodline and literally be no investment demand unless fundamentals are extremely sound. Lets just hope they drill before Mr market panics.

Hedge - HQD.

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