I noticed several of the Mexico juniors were under real pressure today. It appears the break in the metals prices below trendlines may have spooked some funds into booking losses here on a sector rotation basis. SPM, FR, EDR, and GPR are seem very stuck in the mud even though gold and silver have bounced off the lows. This sector is completely demoralized and along with whatever short positions are being laid on, the steady selling is driving the value multiples down even further.

I have yet to see a compelling reason why GPR would be worth nearly $5 a share less than 2 years ago, but here we are today with higher production and a stronger balance sheet yet the company is down by two thirds. Yes, I know that the metals have come down, but really? This kind of bloodletting is irrational and even extreme overreactions in the market tend to retrace to the mean. I said the same thing about a year ago, and no sign of that recovery yet. I still think it will happen.

cheers!
mike