This latest article from the Motley Fool at http://www.fool.com/investing/general/2010/11/23/do-the-shorts-know-something-you-dont.aspx

Makes my point in spades about TRE. At the beginning of the article it states when talking about TRE:

" Of course, this isn't a list of stocks to buy -- or short! These stocks could have serious problems that warrant their short interest, but they might also be stricken by short-term troubles. Only Foolish due diligence will tell you for certain; our 170,000-strong CAPS community offers just such a good place to start."

My impression of the market players for TRE is that they want to see performance. While it certainly is very impressive that Sinclair can raise tens of millions, it would appear that the market players want to see TRE come through with some profits before they gin the stock up. That is what is meant in the above quote by " short-term troubles." That is why TRE cannot catch a bid when gold is going up.

At the same time in the same article the author says"

" Tanzanian's CEO Jim Sinclair famously bet $1 million that gold would trade to $1,650 per ounce on or before Jan. 14 of next year. With gold in the midst of a parabolic rise, he may just win out. CAPS members believe the gold miner will succeed; 86% of those who've rated the company marked it to outperform the broad market averages."

Right now there is something that does not sit well with the market makers about TRE which is why it is not going up. Remember that the last time TRE was at 9 gold was at 700. Now gold is practically at 1400 at TRE is at 6.50. Clearly there is some skepticism about TRE's ability to deliver otherwise TRE would have kept pace with gold and should be at 18. My gut impression is that the market makers are now saying " show me the money" because a 3.5 year depression makes the players very leery. Essentially, the first run up to 9 was a pump and dump with an 80% decline. That gnerates a ton of skepticism.

At the same time from what you can see of the above quote the Motley Fool players think TRE will outperform at some point. My guess is that they are all saying:" Trust but verify" meaning they think there is tremendous potential here but every step needs to be veirfied in order to avoid the fiasco of the last 3.5 years.