think tank, page-158

I was specifically talking about traders trying to play it through ABU that must be frustrated over the last few days.

"You would think this seller/s would have more brains"
Maybe they have?? maybe its the buyers that don't??

Maybe, but then again maybe not. The sellers that sold down to 2.1 got it wrong even though it was trending down at the time. If current sellers are selling to switch to a higher leveraged stock to chase quicker gains (just one possibility) and gold price corrects again rather than breaking through 1350 on this attempt then they may be worse off. Nothing’s for sure in the market. ABU might not have as much leverage to a $100 gain in POG but it also won't have as much leverage to a $100 fall.
What if gold goes in a trading range for a year between $1270-$1400? Most leveraged plays will likely make little to no profit with mc's in the hundreds of millions. ABU could easily make more profit than those other producers with a much lower mc and have more upside leverage to discoveries thanks to that lower mc and higher margins on each ounce added.