Great Basin Gold Shares Plunged: What You Need to Know

By Travis Hoium | More Articles
November 16, 2010 | Comments (0)

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Great Basin Gold (AMEX: GBG) fell as much as 11% during intraday trading after the company released earnings.

So what: Expenses more than doubled to CDN$36 million causing a pre-tax loss of CDN$23.7 million for Great Basin. The company is nearly complete with its Burnstone Project in South Africa, so relief may be on the way.

Now What: Legendary investor George Soros sold shares of Great Basin this quarter, leaving me less than excited to jump into this stock. The Burnstone Project will have a positive effect on earnings and analysts are expecting positive earnings next year as a result, but there still might be better options out there. I'm following George's lead and leaving Great Basin alone today.