Weaker April - tax selling of shares
posted on
May 03, 2011 07:58AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
comment here if you scroll down, a reason for seasonal weakness
I think part of the problem here with ECU is that there are a lot of miners to invest in, and to maintain a decent share price, not only have holders to feel encouaged to hold rather than sell, but new blood also has to be encouraged into the stock on a regular basis.
Message board forums are an ideal place for people to do DD, who have neither the time or interest in wading through masses of filings or number crunching figures, so what's being discussed on the forums is likely to have an impact on some, not all investment decisions.
If at the same time your active 'long' forum is awash with posts about hedgies having hold of ECU which is holding it down, why would people be interested in investing in it?, wouldn't they even if they were interested, be in inclined to wait it out?
Another point, is that traders who use stocks as a vehicle for creating personal income are only really interested in charts and performance, so if there's better performance available eslewhere they're going to be inclined towards moving on with their 'traders'. Having done that, there's then 'a potential loss' if ECU climbs higher or at a faster rate than the new investment, so again a reason for striking up negativity among ECU longs who become discouraged, move on, and create further weakness in the share price.
The problem with getting small amounts of continuous negative material, (and having come through 2008 which was awful for all investors); is that you build up a kind resistance to bad news, rather like the boiling frog, who doesn't notice it's getting gradually warmer and too hot to handle, until it is. If the board was overwhelmingly positive, it would take a lot more than odd speculations as to who's doing what with the stock to discourage people to the point of selling it and moving on.
Can I kindly suggest that although there may be manipulation in trading, it is'nt something anyone here can do much about, and the only way selling is discouraged is by buying. Board member would be much better focussed on supporting the buyers, rather than the sellers. Worse case, a r/s would solve the problem and enable the company to do a PP which would benefit all. When there is a worse case solution, what is there to worry about?