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No one makes big $$$ betting on a sure thing. Or haven't you figured that out yet. It's called risk-reward.
Two possibilities:
(1) The reverse split will happen as stated in the past when the conditions are right to support the market value through the reverse split. In other words, this news is not news at all.
(2) The average shareholder loses out with a reverse split at the wrong time. Again, this is not news.
The market reaction to the announcement of this old news tells the story I think. Then again I could be wrong but that's the game.
News for 'GSPG' - (GoldSpring Receives Funding Commitment for $4.5 Million)
GOLD HILL, Nev., Dec 16, 2009 /PRNewswire-FirstCall via COMTEX/ -- GoldSpring,
Inc. (OTC Bulletin Board: GSPG) announced today that it has entered into a
definitive agreement to obtain $4.5 million in new debt financing for its
Comstock Lode project. The financing is being provided through a consortium led
by an existing shareholder, who is an accredited investor.
The agreement calls for the funding to be provided through convertible
debentures, in six monthly increments of $750,000, which commenced December
10th, 2009. Each debenture has a term of three years, carries an interest rate
of 8%, and is convertible to restricted common stock, at $.01 per share through
maturity. The debentures also include warrants for 50% of the face amount,
exercisable at $.0175, 100% premium to the current stock price, for three years.
"This funding provides GoldSpring with needed capital to advance our Comstock
Lode Project," stated Bill Nance, GoldSpring's Chairman. "Our team is currently
planning the next round of infill drilling, to provide detailed information for
our mine plan. I look forward to updating the market on the progress of this and
other endeavors going forward."
The Company's recent mineral reserve report, summarized in its May 15, 2009
press release, illustrates the success of the Comstock Mine Project to date. The
Company continues to build on that success through the ongoing exploration,
engineering and permitting activities.
The price movements in this stock are far too amusing for the discussion to be so serious!
As darbyflier notes, it's either a pos or it's going to .11 or .22. Huge returns if you have cash to play with.
RSI in this latest move is just brutal. Either there's extremely bad news waiting to break or this is more oversold than it has been in years.
Panic selling by a few holders inducing more panic selling. The volume at the initial drop was not that large. Those holding free shares are good to wait or do some active trading.
The falling wedge pointing at .0100 is very interesting. I wonder to which side it will break out. Such a mystery!
Possibly the lowest daily volume since the initial run up starting in Oct. '07.
2,162,738: lowest daily volume so far this year and possibly going back much longer.
1,831,755 shares traded at 1:38 pm EDT. Over 3.5 billion shares issued. Not too much meaning in this movement.
Is this stock not entirely predictable? Objective, nimble traders have made a fortune time and time again.
Author of the AP article seems to be credible: http://articles.latimes.com/writers/sandra-chereb
There may be much more to come here in the near future. I don't think it's a time to abandon this issue despite the inept PR.
At 4,000,000 your sale if it's been all cleared represents the vast majority of the selling since the PR. Certainly not a sell-off here. More to come on the upside I think.
Interesting to see the similarities in price action between now and the beginning of the year bumping up against .0150
Hopefully this time is the real deal and the breakout will have some strength behind it.
The chart really does look good doesn't it. I sure wouldn't want to bet against GSPG at the moment.
Who wouldn't take a 40-50% return in a week? Especially when bank interest is near 0% p.a.
Just normal consolidation. The price has held up well.
Nothing fancy, it's in the stockcharts.com chart.
Someone wanted to flip the SAR/PAR or mess with some other technical indicator? Anyways they succeeded for the cost of $107 plus commissions.
The daily chart over the past two years, price and volume, says it all:
Look at what happened at about 1430 today. Broader market starts to break down, GSPG follows. I really do suspect the influence of margin calls on marginable stocks held in accounts with GSPG may be having an effect. Given the value of the lots traded here day to day are not that large (less than $100,000 usually), even one retail investor having a margin call and having to liquidate could have a large effect on the price here.
Because the margin call liquidation effect only works to depress the price, and there is no contrary effect, downturns in the broader market will be reflected but not rallies. Also, this explains an extended price recover time relative to the broader market.
There is no commitment to a breakdown showing up in the price. Even after the disappointment to some yesterday, the selloff has been measured and on average volume.
That is what I was thinking. Pontius was likely looking for easy $$$ and GSPG happens to have a good board that said no to that kind of BS.
This is why we had a small drop in PPS from weak-hand selling and not a disaster.
The price action today says there is nothing deeper here.
As I noted earlier, the price and volume today and for the last few days don't support there being anything fundamentally damaging behind this move. Today, after release of the news, the stock fell around 8% on an average volume, and 4% of that was a paint to close.
Also, note the CMF going positive today for the first time in weeks. There is buying pressure here.
Sometimes a resignation is just a resignation.
The price and volume action shows only a few small holders liquidating, and a fair bit of opportunistic buying. Very likely no underlying issues here.
I have a hunch that the negative price action the last week or so has had something to do with margin calls on accounts. Let's face it, the general market is brutal, worst Feb percentage-wise since '33, e.g. GE down 75% in the last year! No doubt that brokers are liquidating whole portfolios as widely held issues tank, and very few have the guts to get in to the issues that are holding up.
I'm still in here, I like the speculative fundamentals.
I'm no charting expert, but I see a potential inverse head and shoulders in the action over the last couple of months. If I'm not mistaken this could be a very positive sign.
Under 3 million short, it might not even raise the price at all to cover that. Definitely no shorting here, just a correction to a longer term channel while waiting for 43-101 or other significant news that would justify a more rapid appreciation.
See what happened to overstock.com and their CEOs efforts: http://en.wikipedia.org/wiki/Overstock.com#Naked_short_selling_campaign
And because it's gone up tens of thousands of percent, the expectation should be that those in at hundredths of a penny will be taking profits. e.g. if I was in at .0008 for $10,000 thats 12.5 mil shares, and even at .04 that's now worth $500,000, a nice return on ten grand. Note too that a year has gone by since the stock was in the hundredths and the 15% LT cap gains rate has kicked in.
As to Faber making 90k and selling 1.8 mil: folks need to realize that first year attorneys in NYC and major centers around the country make 160k per year. Don't you think an experienced business manager would need more than 90k a year for the lifestyle he's earned?
UPDVE = UPDiVE? Appropriate? If they do this consistently, to the pinkies it goes!
Not only that, they're in default on their filings with Nevada. Also, it doesn't seem that the amendment to articles of incorp to effect the r/s was ever filed, so authorized shares are still showing as 1,000,000,000.
https://esos.state.nv.us/SOSServices/AnonymousAccess/CorpSearch/PrintCorp.aspx?lx8nvq=%252boZ3ZKeD3fQszKxYr2S%252b1Q%253d%253d
What if the targets are in even worse financial shape or lack the connections and ability to obtain financing, permits, etc. And GSPG comes along with its equipment and personnel and says we'll drill at our expense and you'll get a percentage of whatever's there?
Market took the o/s increase into account before and on the day it happened, ie on the 11th. That's why the price is at 41-47. It might be news to this board, but not to the market.
Even if fully diluted to 2 bil, there is still more value here than 41-47, maybe not as high pps as some were thinking but at least 2x current.
Just grasping at straws trying to figure out the price movement here. MM shorting doesn't fully explain it, dilution doesn't, selling to get in HTOG doesn't....
Coincidence or not that UPDV has been trading exactly .01 below HTOG for the last few days. And that HTOG's recent approx .02 high was almost exactly .01 above UPDV's high at .0098.
14th, see the SEC calendar. Don't put too much stock in a delay rumor, but as always anything can happen.