RE: RE: RE: RE: RE: HRATTLE the fact something falls does not mean it has value
In fact I suspect stocks that have fallen 90% are just as likely to fall another 90% as do anything else but that's just anecdotal.
when the underlying companies are creating value with those assets
BUT NOTHING HAS CHANGED! MGP have been "creating value" all during the 90% fall. In fact the value creation is on a downward spiral - each new ounce costs more to find. So if the previous value creation caused a 90% drop and new value is worth less PLUS the underlying asset (gold) has also crashed PLUS these MGP assets are worth nothing in the ground without capital to get it out of the ground. THIS IS THE WRITING ON THE WALL.
it is about the future price performance and volatility of the asset.
We could debate risk for hours and I'm happy to!! Hedging on gold increased after the April crash - a sure sign that risk increased. For gold juniors as prices have fallen, equity risk has gone up (deviation from mean has increased), market risk has gone up (as they rely on capital for all income), and commodity risk has gone up as gold confirmed the near two year bear trend. YOU WOULD HAVE TO BE BLIND AS WELL AS STUPID TO THINK RISK IN GOLD JUNIORS HAS NOT GONE UP SINCE THE APRIL CRASH.