Excellent post TIM9LIVES.
I am waiting in ernest for the tax loss season. We are almost guaranteed an increase in sales during December. I am not saying the stock will fall to rock bottom prices like $3.50, but we may see a correction as behaviour follows two tracks:
1) If the stock stays around the $5 - $5.50 mark, there will be a lot of shareholders who bought in over $5.50 (where there was a lot of activity the past month) who may be tempted to sell and buy back in next year.
2) On the opposite end, we have some very happy longs who have averages anywhere from .40 cents to 1.07 from pre-Double Eagle days. My guess is that the longs who have been successful this year will not sell so to defer their capital gains (at least in Canada) into the future.
But we should not remember that the sub-prime crisis in July and August devestated a lot of portfolios. While there has been some rebounding, there are still a lot of stocks whereby people have a loss. These two may be sold off to capture the loss against the Noront gain, if they haven't been already.
We are in a unique year. We had Uraniumania hit in Q1, with a drop in many Uranium companies between 30 - 75% after the hype. The same could be said for Molymania, though the drop was not as severe. Followed up by the subprime crisis with the forced margins sells and you have a lot of paper losses this year.
For those with some cash, wait to pick up some deals the last two weeks of December. If you play your cards right, people will sell you their stock for tax reasons and then buy it back from you in January for a small premium. If the market goes south in December for any reason, the deals will be even better for the upcoming Winter season which should be bullish for Gold companies this year. People, we are at $824 an ounce here!
Smart investors make the most money during market weaknesses. Tax loss or gain selling weakens the market somewhat due to the hard year end tax cutoff dates. Buy low and sell high - always take some profits.
M1.
OT: Did anyone see Tahera hit .17 today? It was at $4 in 2006. A Canadian diamond tragegy.
