Wheels Group Inc GRFJF

don''t get it ?!!

[naz0]

gold hovering at 900 dollars an ounce, wgi announcing they are going into production, are investors really that blind, look at yamana the last week or so, Embry not giving it his kiss of death! still don't understand why gold stocks even the juniors have not been moving over the last few months, any ideas?

[whiteheat]

the reason I believe is, the MM's don't think gold is worth 900 dollars.....besides the large cap gold's, the jr's and emerging gold's have barely moved since 600 dollar gold (with exceptions of course)....I think gold will have to hold 850 or more for 6 months to a year.....the americans don't believe in gold and refuse to buy in any big way, and if and when

[SimplyTheFacts]

Hi naz0, in my opinion the state of the general stock market takes precedence over the action and rise in the price of precious metals. General stock markets are declining because many Banks, funds and institutions are in trouble after the mortgage mess... Due to this mess, there is just not enough money going around right now. The big players who used to show up on the TSX every year and purchase

[pontac1]

Today they poured their first 1000 ounces.

[SimplyTheFacts]

What a fantastic company this is. Truly, in all my eighteen years of investing, it has been very rare finding gems like this one. Glad I listened to loantec1, he has had some good picks lately. Everything about this company is squeaky clean. World class management team, great financial position, in a hot growing sector, no country risk... and the list goes on... However, we have the company and

[make_rubles]

WGI is one of the safest gold plays out there. Sure we can go to 3.25 in the short term BUT when you look at this 1 or 2 years out I cannot see how this is not a screaming buy. We have poured gold already and let's not forget hedging begins in July so everything from now until then is NOT hedged at 801. To date, management has under promised and over delivered which will turn out to be

[SimplyTheFacts]

I agree with everything you wrote rubles. It all depends what kind of a trader you are. Some will purchase this stock and hold it for a year or two and should profit handsomely as the SP moves to $5 - $6 and beyond, depending on what gold does. However, unlike you, I arrived late to this stock. I purchased my biggest chunk at around $3.70 So the entry price for me becomes very important because

[otrab]

As I recall, I believe WGI financed some of their cash requirements by selling forward gold @ $802. Therefore, gold @ $850+++ will not do anything for them until the forward sale quantity has been repaid. Should the price of gold remain higher that $802, it will eventually effect the share price in a positive manner. Hold for the slightly longer term and benefit. Otrab

[make_rubles]

WGI hedged some gold at 801 starting in July 2008 until December 2014. ~5500 oz per month are hedged during this period for ~66K oz per year. The other 100K oz per year are unhedged. So the statement "Therefore, gold @ $850+++ will not do anything for them until the forward sale quantity has been repaid." is not true. Also lets not forget the approx. the 1st 60K oz produced in 1st

[make_rubles]

I see where you are coming from STF. I agree that the general resource sector hibernates during the summer creating some nice buying opportunities but I'm just not so sure you will get the big correction in WGI this summer. By then we will have some earnings numbers from them as well as projections. Maybe this is the correction now? Time will tell. Good Luck!

[SimplyTheFacts]

Thanks rubles, I appreciate your thoughts. I'm not looking for a big correction this summer for WGI, but in all honesty, sometime between now and end of summer, I think we will have the chance to accumulate in the upper $2s... and I hope to be there to average down. Regards, STF

[uncviper23]

I certainly do. Someone that has more money than we do sells more than we buy. I absolutely bet that there is an order being filled don't here and someone is getting a very large commission. See everyone tomorrow. Time to play in the snow with the family.