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Semafo Inc. T.SMF

Semafo Inc is a Canadian mining company with gold production and exploration activities in Burkina Faso. The company's main operations are in Boungou, Burkina Faso, and Mana, Burkina Faso. Boungou is a relatively new production site that is located in southeastern Burkina Faso. The Mana project, which has been in operation longer, includes the Siou deposit, which is about 20 kilometers from the Mana Mine in Burkina Faso. Semafo has developed exploration strategies for future deposits in West Afr


TSX:SMF - Post by User

Bullboard Posts
Post by westhecaton Aug 25, 2011 7:31am
611 Views
Post# 18977703

Irrational comments

Irrational comments
Based on this post I really need to have your definition of a victim defined.
"Unfortunately the real victims are the gold stock holders.  We never benefitted from the rise in the price of gold and yet when the POG nose dives, it always take the stock price down with it.  We are the perenial collateral damage!"

In one post your reluctance to sell is because you will have big capital gains tax to pay when you do? I spent my entire adult life trying to become a "victim" of a capital gain!   I also spend time trying to become a victim of 649 and LottoMax.

The spot gold market is run by speculators with very few long term investors. They run commodity prices up and then drive them back down.  The rational investor knows this. Why should the rational investor expect that  price of any stock should rise on a short term blip. It's the irrational who chase a stock based on spikes and then become the "victim" when it drops.

This stock rose  from a low on Aug 8th of $7.07 to a high $9.15 on Aug 11th , better than 25% return in 3 days.  What did gold do in that period?   Annualized that would be 3000%. 

Should have sold everything at $9.00 like you said you would do and you wouldn't feel victimized.  I actually feel victimized that you sold some of your stock into a soft market.  You owe me a coffee.
 
You should feel comfortable in that the majority of these drops are on low volume. You get the guy that bought on the spike is now selling on the drop. Irrational on both the buy and sell side. The long sits and waits it out.
 
Gold is now $200 higher than last quarter's average after the drop of the last few days. This company will show record performance again in the 3rd QTR.  Fully funded to explore and move all of their projects forward.

Jobs and Jackson Hole on tap for today. Put on your seatbelt.

Wes

Wes
Bullboard Posts