RE:RE:This is all so predictableA friend just sent me this Flash Update from Jordan Roy-Byrne of the Daily Gold. Roy-Byrne was one one of Novo's paid advertisers, apparently he threw in the towel and got out recently. It may sound counter intuitive but I find this to be a good sign when a paid advertiser has liquidated their holdings. Anyway here is his comments:
Novo Resources lost support at C$3.00-$3.10 and closed down at C$2.85. It was holding above that level (the low from the last major news) over the past 3-4 weeks. We sold our remaining position as we do not see a bottom coming until strong long-term support at C$2.00. Its possible it could bottom at the 400-dma at C$2.35. If the stock falls to C$2.00 then the market is giving the Karratha project a value of only $1/share and the majority of the risk would be priced out of the stock. So if the stock continues to trade lower, we will look to buy back in around C$2.00.