RE:RE:good time to buy??We should be at 61 cents right now if it was not for some panicked retail investors. How do I get that number? Well take a look at this chart:
https://finance.yahoo.com/charts?s=GDXJ#symbol=gdxj;range=6m;compare=vg.to;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=; .
After reporting its third quarter, VG had a conference call on November 15th. The share price closed on November 15th at 51 cents. Since that time the Junior Gold Miner index has gone from 35.98 to 43.31 or has increased by 20%. If VG had increased by 20% we would be sitting at 61 cents.
Since I was on that conference I can tell you that the restructuring of our debts was one of the main topics of the call. In other words it was made public that we were having difficulty with the flexibility of our current debts. In my opinion nothing from that point until today should have made any investor get out of their seat and dump their shares. But that is not what happened. When a PR was put out saying we were in default of the DB loan, the share price sank to 10 cents. But why? Do you think DB wanted to come in and take over the company, or did they simply want their money back? The shorts combined with naive investors ran around like Chicken Little saying the sky is falling. Surely VG will be bankrupt soon??? Well sophisticated investors understand that the best way to demand payment is to put a company in default...at this point the company has no choice but to find another lender/investor. But wait...we were already engaged in this process and subsequently Raymond James was hired to help things along (i.e. hopefully get more investors to the table leading to a better deal). So unless someone knew there was no one at the table, why were people selling?
A long winded way of saying, we should be at 61 cents today just to get back to normalcy and in my opinion if we get any positive news from the restructuring we will move considerably higher from there.