Continental Gold Limited New CGOOF

RE:RE:Stock behaving as expected. Beware oil bottom and fast money

[Masterbuilder]

Nobody doubts the buried treasure. It makes sense to recognize the risk with the Columbian government. If they say "We want twice as much $$ royalty"... who you going to call to fight it? In terms of the company, what is the business model? They are not streamers like Franco Nevada or Silver Wheaton. There is only discounted guesses about the final costs of delivering an ounce of gold from this location. At this stage, CNL is a cash burner. And trying to raise money in this market won't be fun. I could see a % sale to a bigger company, but the big boys aren't buying these days are they? Lastly, gold could very well retrace to 50% of its high ($1900) which means a possible bottom of $950. Gold is being propped up right now due to safe haven fast money. You have NOT seen massive volume/buying of the NYSE-GLD. This would be real market confirmation. In closing, it is simply not enough to have "drill results and estimated probable reserves". Every analyst calls this stock "SPECULATIVE" for a reason. It has been a great trading stock. I think that's the play.