Hi Crowy, no-one knows if anyone is being genuine or not- hence the humour in the responses buddy. Follow Riddick's advice and read the presentations, brokers'and CEO's comments on the website. Too much for anyone to go through.
Re. direction, as soon as the fundies start buying again the climb upwards will resume. Funds started the selling at around $1.80 while retail were still buying and waiting to crack $2.00. I know, I was there!
I wrote the following on the 7/8/08.
******* My understanding is that the funds having been trading the crap out of GBG as they do with a lot of stocks, and the long term holders are forced to go along for the ride. In contrast, the punters trading in the same direction as the funds have done extremely well out of GBG's gyrations.
A number of weeks back I posted that GBG appeared to be forming a head and shoulders pattern which could see the price fall back to around $1.20. We have seen that now and as long as the XAO doesn't drop much further over the next few weeks, I'd expect GBG to turn around very soon and start rising again. Considering the news to come out in the coming months, it should break the $2.00 barrier this time.
While nothing is of certainty in the market, I think CPG's patience will be rewarded in the next few months. Don't forget Ansteel is to drop in a further $123m this month and GBG its share.
Ansteel would not be paying in their share, nor building new plants (to specifically process the Karara concentrate) if they harboured doubts about their ability to snare lots of Karara ore.
*********
I don't believe it is as much margin calls or stop losses etc causing the slide in GBG AND all the other resource and energy stocks, but rather the funds that have been unloading for various reasons, global downturn, price of oil, cashing up, trading, etc., Don't forget, they trade too AND they influence price direction.
The funds appear to be starting to buy resource and energy stocks again as evidenced yesterday (there is good reason for funds to be doing so)- while the retail market, in the other corner, is still reeling in fear and shock. The picture for financial stocks though is not so compelling, at least not for a while yet. Yesterday "appeared" a good example of this.
Check some of the recent comments on this thread that predict prices for GBG right down to 80c. They are still fearful (and rightly so) and not prepared to buy because they have no control or idea over the price direction, whereas the fundies do. If you trade along with the funds, regardless of what's happening to the company, you will do OK. In other words follow the trend! One or two weeks more will confirm if there is any reversal of trend.
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
