Originally posted by goldbear77
@IsdHope
i remember having the same vexations before i understood the stock market
the market pricing is run by big investors specifically to take advantage of naive rubes like yourself
pros buy when prices are low - sell when prices are high. they purposefully bid stocks up then drop them pre-accouncement to flush rubes
gold stocks are also not directy correlated to gold price or any other thing.
Newcrest was in a 4 year falling share price period when SAR tripled - despite being a much larger producer at much lower cost
Before investing in stocks - you would be wise to spend at least 1 and preferably 2-3 years studying technical trading behaviours - that is what I wish I had done
RSG in particular is a highly manipulable stock because it still has a lot of unknowns around whether both Syama and Ravenswood will deliver to plan.
Management has also shown itself repeatedly overoptimistic in past 12 months - and so the stock gets discounted accordingly
The additional $50m finance just announced reinforced those doubts.
RSG is extremely cheap in theory vs what paper plans say it will be in say 2 years. But its purely theory.
If you price it on its current production rate and aisc its only modestly cheap - with continued capex requirements that have risk of blowouts - and a very high aisc - which always means a company will be discoutned because its profitability is riskier
RGS is currently forming what looks like a descending wedge - if the GDX keeps rising I suspect youll see a rip up in RSG purely on valuation gravity and money moving into the more speculative stocks - but this formation is purely designed to cause despair in retail punters
there is absolutely nothing RSG or any othe company can do about this except
a) deliver what they say they will deliver
b) manage capital well and eventually buy back shares to tighten the register
but recognise this - RSG is a spec stock currently. dont be fooled. its essentially a massive developer until its proven the 2 new mines are continuously operating to plan
higher risk higher potential return
Hi goldbear77,
Thanks for your input.
But I am not new to this share trading game. i have traded RSG for over 2 years. Butt his is the first time I have seen RSG below its price more than 10 days ago when the share price of gold has shot up $35. Please provide another period of time you can remember when this happens. Even today when gold price has shot up yesterday, it still come down today. More suspicious and Fishy that other traded ASX gold shares have gone up during this period but not RSG. Never seen this before even though I have monitored the share closely.
Isdhope
(20min delay)