RE: CAN has $120 Million Cash I talked to them and the answers are simple albeit not exciting. CAN is measured against companies operating in it's universe. At a discount to them 18 months ago you could attribute 1 million onces in the ground, 2.5 mill upside with parallel systems , excited fund/pro investors buying momentum and a rising gold price with 2015 projected mine start and projected $288.00 recovery costs.
Now the market wants to see the study that proves there is at least 1.0 but preferably 1.5 million ounces with potential, a series of positive news results and the final posted nail in the SOC issue. Not that the SOC issue has any real influence on the price other then how poorly it was dealt with .In other words the warm and fuzzies are off CANACO and the only cheerleaders are the few guys here as the pro market never discusses them anymore other then to say, "too bad that was a good run."
That being said i believe the "C" study will prove up 1.5mil ounces and potential for much more. They will release positive information from drill results and they will announce going ahead with a mine starting in 2015.
The world wide economy will not stop a junior from running up as we all know there are trillions sitting on the sidelines looking for a momentum story to buy into but it will basically cut the run up in half.
Right now CANACO is priced exactly right for the market at $1.45 But, if you knew that on March 31/2012 , that CANACO would rally to $3.00 cdn on he "C" study and drill results how much would you be buying today? I'm seeing systematic purchasing going on every day here so there is something afoot.
CANACO has to re-prove themselves in this difficult market and the analysts will not say anything until after the news starts to flow but expect short term targets in this environment at $3.25 not $5.00
My money is down and I have a sell at $3.00 for April 1st. I have already written off Greece , Portugal, Italy and E-Spain . There will be one more significant dip in the market in the first half of 2012 which is why I will be 100% cash by Mid April. I do expect a significant North American Rally in the later part of 2012 as the world goes there for safer haven and the numbers start to click with the optimistic outlook of either Obama being exiled or given more power. Either way the green will flow in North America.
It will be two years to get all my upside back but it can and will be done. JMO