Why Plan to buy more
posted on
Dec 15, 2010 01:59PM
New Discovery Resulting in a 20KM Mineralized Gold Belt
As some of you may read in my previous post. I bought a small amount of shares of GNH a few days ago. After doing a ton of DD. I have come to the conclusion that we have reached a bottom and i plan on adding alot more shares here. My reasoning for this is first off, i have been reading posts here going back from the rise to a dollar to recent days (very impressed with the tallent level of some of the posters here). I refused to chase this stock up before mostly because the over all market sentiment was wayyy to bullish. As a contrarion invester I put alot of stock (pun intended) into sentiment.. I believe on the run up we saw maybe one or two posters that were bearish or sceptical on this stock and the rest were under the impression they were going to be millionairs in a few months.. Well usually when you witness setiment like that on a stock that has 3-4 folded on hype. Its time to take your money and run because nothing will live up to that hype and people had priced in greatness. Now recently even those posters who thought they were going to be millionairs are either selling and turning bearish and the sentiment is just as bearish as it was bullish before.. To me this signals a bottom is very near because a collapse of the SP is being hammerd into people brains (after all this selloff has had very little to do with anything important like fundatmentals its important to remember that). the next thing i looked at is support. 32 cents is one and 28 or high 20's is a great support level. Volume although still low has risen at current levels. Often a leading indicator that a bottom is near. I have seen 32 tested twice recently and we are starting to see bids form when it gets to 33 32..positive sign.. Ask side remains low as well. From a technical stand point I am willing to go out on a limb here and call a bottom at 32. Call me crazy or not but if we trade flat or rise slightly during the remainder of the week here. i could see a rally happen.. I talked with manangment over the last few days. And although many of you seem to believe in Conspiracy theories over the delays.. I tend to believe the simple explanation is often the most correct. Meaning delays are simply the labs issue. Insiders continue to hold. Institutions are buying, Smart people like West and others are buying.. retail is selling. I for one am glad it looks as though Assays will not be out till January.. As Feel this stock will be in the 40's or possibly 50's when thats released. I also feel gold will trade in new highs once Christmas is over. Just my opinion sorry for the long read as i am quite bored lol