I am beginning to sound like a broken record, it was another very quiet week of trading for Tocvan, closing Friday at $0.41 on only 31,000 shares, it is important to note that most of the trading occurred during the last 30 minutes.
Tocvan traded only 92,000 shares for the entire week.
It has been over a month since Tocvan last issued a Press Release. I suspect we will be due for an update very soon. Nothing has changed materially, otherwise I would expect significantly more selling and a rush to the door, but this clearly isn't happening.
In my experience, this usually means there is enough information coming from the company in terms of brief interviews to keep the interest of shareholders. I remain perplexed that drilling hasn't started turning yet, I suspect there is a good reason. Let's hope for more clarity soon as to what has been going on over the last month.
I think everyone will agree that it has been a very poor market for resource stocks.
The world markets are focused on Nvidia and everything AI, but as my dad always said, "what goes up quickly, generally comes down quickly". Or to put it another way, nothing goes up forever. Financial reality will soon correct the overvalued situation in many large stocks.
My dad also laughed when he said, "when Grandma says she is buying, it is time to sell".
A case in point, I was watching TV last night when a young woman, about 30 years old , was being interviewed. She made $867 on Nvidia today. She was so proud that now she is a trader who plays these active stocks daily. At least my Grandma was experienced, this woman seemed to be caught up in the ultra fast trading opportunities to make more money than she could ever imagine.
But If you look at the big boys, they are selling record stock into this very frothy market. They know it can't last forever, but if there are those that want to buy at the top, they will surely and happily sell their shares to them.
Warren Buffet is sitting on record $167 B in cash - WHY, simply, he doesn't see many good investments at these very high valuations. Zuckerberg sold $428 M in Meta stock in the last two months....
Bezos sold over $2B in stock over the last several days... and the list goes on and on.
The traders and brokers are driving in inexperienced buyers at record numbers, providing exits to the very rich. Also making brokers and traders record profits, not to mention the front running of upward trends they always support until the trend reverses. It is the reversal of the trend where many people get caught, only to find their broker has sold and is now playing a new hot stock or different sector that is being promoted.
I suspect as the markets correct from these highs, and history repeats itself, this will be good for gold.
Lastly, the stock market is the largest legal gambling machine in the world, people are hooked and gambling more and more on this frothy market. I suspect this isn't going to end well for this new generation of traders that are influenced by mass media and very cheap trading commissions. My general rule of thumb, we will always hear about their wins, but we will never hear about their losses.
This is the mark of a true gambler - play until you lose it all.