RE:RE:RE:integra investment roundup from marine "Investors own gold stocks for one overwhelmingly-dominant reason, because they amplify underlying moves in gold. As a sector, the gold stocks generally leverage gold on the order of 2x to 3x. For a 10% move in gold, the HUI index or GDX gold-stock ETF will usually move 20% to 30%.
Has Integra Gold stock price maintained this leverage?
From 1/21 through 2/26, POG increased 11%
From 1/21 through 2/26, ICG share price increased 30%
Would shares of ICG increased at a greater rate with a lesser amount of shares? While there may be valid arguments on both sides of the coin, the answer is unknown.
The fact is, and what everyone here already knows, the compelling ingredient for ICG stock to appreciate is the raise in the POG, and not an reduced share count. The second compelling ingredient would be the continued increase in ICG's resource.
If we maintain the ratio stated above, and gold continues to break-out, then at $1500 gold, ICG stock would be worth around $1.10 per/share, making any roll-back argument less compelling for those in favor.
Being that the continued raise in the POG is the compelling ingredient of future ICG share appreciation, a clearer indication, or a confirmation of trend change to the markets would be essential .
Trend change in Gold's Monthly Chart for February (if it holds Monday, 2/29) shows the probability that the market is in the process of turning direction.
The forces will be hard at work starting Sunday evening to try and negate this from occurring
