"..yes it has been grossly oversold, and the problem now is that is was SO OVERSOLD that it is now in the perilous position .."
There are some fundamental issues as well in addition to just technical issues with respect to the stock price.
First and foremost is that GSR is located in the Yukon. What gave rise to the oversold conditions were not just drill specific results but a reflection of the fact that there is a short Yukon season. Many bought GSR and held onto the shares to see what drill results would reveal and even if they had been positive, its my opinion that many still would have opted to sell given that the exploration season was essentially concluded.
Secondly, financing is going to be a question mark going forward. As recent articles have suggested, its a tight market for JR's to raise cash and capital where many are apt to run out of money in 2013. GSR management, however, has already tightened the screws heading into next season. IMO, they should have little to no problems on a modest drill program in a first tranch of equity financing. Anything more aggressive and or a second tranch of equity to finance drills in the second half of the Yukon season could run into some resistance in the market place. Truth be told, GSR is a green exploration concern searching for a flagship property where other higher quality JR's with proven flagship properties are apt to be first in line financing wise. Especially if they are at or near production.
Thirdly, the Yukon has lost its luster. Etho's Gold (v.ECC) has word on the street that they plan to pull out of the Yukon and currently trade at or below cash in the bank. Hence, much rests on the quality of GSR's exploration properties to obtain financing. The longer term goal being a multi-million ounce property. IMO, one of the appeals of GSR is that I do not expect years of drilling to prove up a resource should gold be found. Obviously, some of that will have to be done. Nonetheless, my thinking is that if a good enough resource can be found early on, GSR will flip the property to the highest bidder and v.POP will be able to cash in on its shares.
Going forward, there are three primary catalysts to the stock price:
1. Higher gold prices
2. Start of the Yukon season
3. Financing and upstart of drilling
GSR will face heavy head winds between now and spring but like before, investors will eventually buy in and hold out for drill results. Like before, and as Eqquitymonger has pointed out, play it smart. If possible, let profits not taken ride out the next round of drill results (ie: assuming GSR attracts investor attention on another round of drilling results). Another scenario is that one might have to ride out the first round of drill results for GSR to re-attract attention and build some confidence among investors. If so, play it smart as to the second round of drill results for one thing is certain next year - the Yukon season will come to a close once again!