Commitemnet of Traders report showed a humungus skewd position in gold for the last week (4-June-2002) I believe was the last report), and as ususal it had to move one way or the other from its current level of $325-328/oz.
For the would be am-still-a-bull is that commericals have been covering their short positions to the tune of approximeatly 20% before gold dropped below $325/oz.
Now at $319/oz, if open interest substianally declines to say below 170,000 contracts then consider this to be a good sign, wait a few days and accumulate beaten down underprice gold stocks. Which stocks?
For the would be am-now-a-bear the drop in open interest is not a good sign. If open interest persists above 175,000 stay short, till speculators are in balance with commercials.
As far as I would be, sold RSG the day before the 10cent/share capital return, and I would be looking to buy it back.
Where?
Probably in the low to mid 70s if one gets the chance.
Why?
Despite the dilution effect the RSGO options are having, (estimated to be about 10%), the stock is still trading at a small discount to its NPV and below 10 on PER.
The overhang over PSR, though the good news is out, may soon be over, Golden Pride is just that, and the Spinifex Sub-Sahara JV might turn out to be a beuaty.
Also stick with RSG or/and DOM for Yummburra exploration exposure.
