Thanks big mahn. Another massive block trade this morning. Funds are all over this.
Another thing I want to discuss is that the current market cap is now over US$150M. This is significant because it means the stock will very likely be added to the GDXJ ETF on either the 18 or 25 March. Off the top of my head I would guess that the GDXJ will need to buy something in the order of 15-20M shares. There will be traders front running the GDXJ buying too.
The confluence of gold price uptrend, GDXJ buying and big fund buying is an ideal set of circumstances for holders. Massive competition for stock.
Regarding other picks, I've recently been buying RSG. While I like $A gold stocks there is tremendous leverage to US dollar gold price in stocks like RSG and PRU. PRU performed poorly recently but RSG is in favour at the moment and chart looks excellent. They have US dollar debt and large production of 300,000 oz +. If it ever breaks out above 50 cents it has the potential to go on a big run. I'm sick of others making the comparison on every gold thread, but RSG has more similarities to SBM than any other gold stock.
DRM Price at posting:
73.0¢ Sentiment: Buy Disclosure: Held
