The Blues...
posted on
May 06, 2011 05:05PM
New Discovery Resulting in a 20KM Mineralized Gold Belt
are not in the skies of Ontario, because they wanted it on the ground.
Quebec is full of Orange, and the color of Gold.
Had a long discusion with a good friend today, a broker for 30 years. I asked him if he had any idea why the SP was continuously being beaten up? Quite simple he said, most people that invest in these juniors don't have a clue how to interpret the potential of a deposit. They jump on a pony that is running and then jump off a short time later. Same analogy applies for what appears to be a dog going down. They look at the chart, get scared and pushed to a limit where they can't take it anymore, and jump off the dog. Most people don't look at an opportunity like this as a longer term investment, because they don't understand how to value a company like this at this stage. We talked about manipulation and he confirmed that indeed it goes on all the time with junior miners, especially one which has put out as much information as GNH has done. Reason being, the manipulators understand the potential of what the assays are saying and they have alot of money, time and experience to play a company like GNH really hard. GNH fell right into a manipulators hand book, starting with all the hype, the delays, the conservative nature of how Tilsley reports, the heavy retail involvement, ladeda......and here we are. I was telling him from all my studies it makes no sense that the GNH SP is trading where it is currently, and he agreed saying GNH should currently be somewhere around 40 cents.
The other thing he noted, that being the price is being pushed down on relatively low dollar volume, this can be the doing of someone wanting to do the next PP because they know one will have to be done this year. By doing so they get a much larger slice of the pie. There are many types and colors of thieves!
Skier