ASA Gold and Precious Metals Ltd C.ASA

Primary Symbol: ASA

ASA Gold and Precious Metals Limited is a non-diversified, closed-end investment company. The Company's investment objective is long-term capital appreciation primarily through investing in companies engaged in the exploration for, development of projects or mining of precious metals and minerals. The Company invests approximately 80% of its total assets in common shares or securities convertible into common shares of companies engaged, directly or indirectly, in the exploration, mining or processing of gold, silver, platinum, diamonds or other precious minerals; held as bullion or other direct forms of gold, silver, platinum or other precious minerals; in instruments representing interests in gold, silver, platinum or other precious minerals, and/or in securities of investment companies, including exchange traded funds, or other securities. The Company’s investment adviser is Merk Investments LLC.

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ASA Gold and Precious Metals Ltd > Broken the Shell of $ 2.00 - VLNS

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Comment by KelownaClownon Dec 12, 2020 6:48am

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Post# 32092543

RE:RE:RE:RE:RE:RE:Broken the Shell of $ 2.00 - VLNS

Benedictus wrote:
The continued weakness is surprising. The 1.67 - 1.70 support needs to hold or it's likely going back to the 1.50s. Will be curious to see if indeed there's a continued uptick with the shorts on the next report.

Anyone have any ideas why there's such continued weakness? My only theory is that margins are still under significant pressure and despite an unbelievably successful pivot last quarter, the market is fixated more on flat top line growth, pricing compression in the oil segment and a current lower margin business until they scale up in K2.

Weak hands are undoubtedly being shaken out as other mj stocks go up and vlns stays rangebound between 1.50 - 2. Longer term I believe this team will drive top and bottom line growth and be one of the best performers in the Canadian mj market. All imo.

To explain why Valens share price is stuck in the current range, my best guess is the boom in mushroom stocks.

I have no reason to believe that Valens is going to release any significant news, or release financial results, for at least a couple of months. In the meantime, mushroom stocks are booming, it could be another temporary bubble, but recently there's money to be made in fungus. Therefore people may be thinking, why leave money parked in Valens where nothing is expected to happen in the near future, while 'shroom stocks are going ballistic? It will always be possible to switch back to Valens in a couple of months, or on news.

Personally, I was planning on adding to my Valens holdings at these prices, but recently I've decieded to buy shroom stocks instead. I'm certainly not selling Valens, but recently my new investment dollars have gone into NUMI, RVV, CBDT, MYCO, and CYBN - and the results have been insane.

Anyway, that's my theory - many retail investors put their money where they see the best opportunity to make short-term profits, and right now that's not pot or pot-related stocks - shrooms, pharma, tech - those are the hot sectors. Just my opinion.

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