Continental Gold Limited New CGOOF

Correction versus speculation. About time.

[Masterbuilder]

If you have been following my posts, I have been banging the table that gold will trend down and that Goldman Sachs is at $1089 average price for 2016. At the time of writing this post, gold is $1130. CNL will eventually trade down in price in line with sinking gold prices. That is just the reality. And we all know that what is helping the CNL price today is "pure speculation" that a senior gold company will take this out shortly after the permit gets approved. Yes, there is a trade here. Yes, this upcoming event is being priced into the stock today. The market is not stupid, and you cannot possibly believe that the traders haven't already accumulated stock ahead of this news. The 50 day moving average is around $2.75 and that is a logical level for this stock to pull back to. CNL is a volatile stock and has great trading potential. As an investment, they produce nothing. There is no mine without $500M or so being invested in it. That will dilute the stock. The forces of stock price correction (fundamental and techical) are fighting with speculative fervor and it's time to get real.