It is unbelievable the squabbling of the past week or so. There is no reason other than tax-loss selling that the price is where it is today. After today there are two more days left for tax-loss selling and then the stock will go back to the level of support it has seen the past few months (.18 to .23).
I mean seriously, do you not think that anyone who bought at $1.55 earlier this year is not going to want to bank capital gain losses when the stock was at .20 cents? Especially given that we are in a holding pattern in terms of drilling for at least another nine months.
The prices this week are compliments of two groups. First, the shorters who foresaw the tax loss selling and second, the sellers themselves who quite frankly do not care whether they get .15 cents or .17 cents for a stock they paid over $1 for earlier this year.
Proof of the shorters? This just came out today: http://infoventure.tsx.com/TSXVenture/TSXVentureHttpController?GetPage=ShortSummary&SECURITY_ID=204791&MARKET_ID=CDNX&SEC_SYM_SID=2&HC_FLAG1=Y&HC_FLAG1=Y
Proof of the sellers? Check the volume and price for the past week or so.
What I do know is that this tax-loss selling has created an amazing buying opportunity for anyone willing to buy now and wait 9 to 12 months while this company prepares for round 2 of the drilling campaigns. Most will wait until a month before news comes out and will pay a large premium to buy stock at that time. But in order to Buy Low and Sell High one has to Buy Low. And it does not get any lower than it has this week.
This is likely my last post this year unless news comes out from CGX or Guyana but with that said I want to wish all of the longs a very Merry Christmas and a much better 2013.