From Jim Sinclares Website
Posted On: Thursday, February 01, 2007, 12:34:00 PM EST
Certain PM Shares Not Performing?
Author: Jim Sinclair
Dear Jim,
As usual, you are right on your projections. The window is open and the breeze sure feels good (joke). I am however quite confused today in regards to the price action of 'certain' PM shares.
Gold is very strong today but some of the obvious PM shares just took a beating for no particular reason. This PM share I have in my portfolio had nothing but positive news so far (even the ones most recently), yet, it took a major beating on a day I would expect it to perform. At times, I am confused and discouraged by this kind of performance. I am practicing "The Green Doctrine".
Major short undertaking perhaps?
Regards,
CIGA "D"
Dear D,
It would be preferable to have the gold share running coincident with the gold price as that is generally a good confirmation of a breakout, especially above a platform. So far it has been profitable to gold share short sellers to short the gold shares on gold breakouts even if bullish.
For the longer view see Mr. Tan's article, published today, as accurate on its first gold price objective. Be assured that gold shares will not hibernate as gold moves not only above the platform but above all the angels.
The short sellers in the main have been selling strength short and buying weakness. The usual tactic of a short is to have some advisor bad mouth the situation like with RGLD when it was driven to $11.
The less-professional the short, the less prominent the bad mouth.
If you feel good about the fundamental condition of your PM share then the Green Doctrine applies.
Dealing PM anything has never been easy. It is in fact the most challenging effort ever which can also be the most profitable.
I recall Durban Deep at the beginning of the last bull market at USD 0.36 and then moving to USD$36.
The drama in between was simply wild and ran many people out of the situation from time to time.
Respectfully Yours,
Jim
AI
