From Resource Opportunities

This year has been the most brutal period in a decade for junior resource stocks. The last couple of weeks have been particularly painful, in part because buyers were on holiday in Canada and the United States.

A few companies are facing significant selling pressure. Undoubtedly, there are some large holders who have made the decision to exit the sector and are pushing stock onto the market for whatever they can get. Until recently, there were buyers willing to take up any stock that came on to the market, albeit at progressively lower prices.

For most companies, the problem is not so much the selling pressure as a lack of buyers. There are numerous examples of share prices being pushed sharply lower by sales of a few thousand shares.

Most of the commentary that I (Rouston) read and the people I talk with concur that the markets will rebound, pointing to September as the most likely turning point. With that outlook, there has not been a hurry to take advantage of bargains at this time. As a result, the prices just keep sagging when shareholders insist in selling....