The SP is probably being held down by people disenchanted with the purchase of PIR, which has a steep upward trending share price. There is a lot of speculation in the share price of PIR, lets hope they can deliver.
Some investors may have in their mind that what goes up so steeply may go down steeply, or at least is more likely go down. So spec money would be running away. GRY undoubtedly would be in for a long term.
Some people would think that smart money would not buy on a speculative run up, but rather creep in on a downward trend/weakening...PIR have a market cap of about $250m which is about the same as AMX. So investors with a longer term horizon maybe experiencing doubts and walking to AMX or another company with a more conservative approach.
What GRY have done is to run into Liberia, Mauritania, now Mali, have permits they are positioning themselves to obtain in Cote D'Voire, as well as pushing Banfora through a feasibility study...so they will have a presence in 5 West African countries, each with different laws, customs, ways of doing business, geology etc. Completing a feasability study on time, on budget in West Africa is not a light undertaking.
Smart longer term money might think this is a hurdle (s) too far, as it stretches management, no matter how good they think they are or they are.
GRY Price at posting:
$1.23 Sentiment: None Disclosure: Not Held
