Unfortunatly Novac Sometimes gold stocks do act like regular stocks, and follow the market action instead of the gold price. I don't like it anymore than you do, because I have a nice parcel of shares of MYG that I would like to see go up alot, but it does happen.
tibbs made a great post, and is the best and smartest poster on hot copper for my money.
I hope I am wrong, and the stock price goes up alot from here, however I keep believing that the market wanted to see some blue sky from MYG in the drilling of Spanish Galleon and Pieces of Eight.
However, in their last presentation, MYG decided to concentrate on Deflector. MYG is still looked at as a explorer, not a producer, which they won't be for 18 months or so, and they still have to raise money to pay for many things, upgrade of the mill, more drilling, etc etc.
I owned a stock in Canada once, which was similiar to MYG. The famous Eric Sprott owned 15 percent of this stock. I was told by someone in mangement that Eric Sprott told them that with the money they had raised, it was important to build ozs as fast as possible, if you want to get your stock price much higher, when you need to raise money again. Drill shallow and drill cheap.
IMHO, that is why I wanted mangement to drill as many holes at Spanish Galleon as possible. To show the market that the unexplored deposits, Spanish Galleon being one, could be bigger than Deflector, would open the possibility that the other unexplored deposits at Gullewa might be bigger too.
This would not only build gold ozs, but give the market alot of blue sky at Gullewa that it wanted to see from MYG.
Hopefully, what I am saying won't matter, and if the gold price has another good year, which I believe it will, MYG stock price will do well anyway, IMHO. I just think that they would have done better by building gold ozs at Spanish Galleon as fast as possible. All is just my humble opinion.
MYG Price at posting:
13.3¢ Sentiment: ST Buy Disclosure: Held
