GREY:VITFF - Post by User
Comment by
MVargason Apr 12, 2022 11:52pm
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Post# 34599052
RE:GOLD GOES UP VGCX GOES DOWN
RE:GOLD GOES UP VGCX GOES DOWNA simplistic response, but momuntum is a huge factor in stock price direction - both up and down and for VGCX the momuntum is currently down. With the POG looking to crack $2,000 again, the price action on VGCX doesn't lend itself to anyone looking to invest in gold equities to take a position. If you are a shareholder, it is tough to miss out on the increasing price of gold and undoubtedly some will switch horses. Van Eck has recently been reducing its holdings of VGCX in its ETF funds.
With gold at $1970 this should be a $20 stock today and would be with better guidance and honesty from management. Eventually the results will speak for themselves, but we are currently vulnerable to a hostile takeover offer that many may find disappointing. As much as John and the BOD may not entertain an offer of say $20 or less, it is the major shareholders that will determine whether such a bid would succeed. If Coeur needs cash for their other developments, then it would take a long time to realize the same amount of cash from Victoria operations to compare with receiving $220 million from the sale of their shares at $20/share. So I believe they would accept $20/share as would many others, including those that bought the first sale of Orion shares at $17/share.
To powerman, the price is not being walked down for a financing as Victoria has access to any needed capital expenditure funds from their existing LOC.