Lou,
Wondering if you may be able to provide your insight into Metanor Resources.
Producing, awaiting 43 101, infrastructure value worth more than the stock.
On a weekly chart looks like a head and shoulders but this one is making me break all trading rules of being a wise and discreet. Your help would be appreciated.
Regards
Rob
Hi Rob,
When you [...]
Nothing suggests a breakout or a breakdown and until volume and production pick up its not likely to move in either direction.
At this point I would say we need to re-test $16.00 to get the stock out from under the selling pressure its been under.
Right now investors are in a selling mood and the best you can hope for at the present time is for the stock to hold onto support at $0.625!
On a fundamental basis YNG has yet to produce enough gold to generate a profit and as a results will have to continue to issue shares to fund its programs. Selling shares at $0.275 is certainly not the price that management wanted but its what the market was willing to pay.
If you have a 5 year time horizon, have taken the bit on a continued advance in gold, and have an appetite for risk then the warrants offer a reasonable reward for the risk you are taking.
If your view of the future is driven by concern about inflation what that implies for the value of gold then NG is a good hedge against that outcome.
