Paul VanEeden
China Gold International Resources
CGG-T
DON'T BUY
May 01, 2006
Has a very good project in China. If you are okay with investing in China, there are two companies that stand out, this one and Sino Gold. Not a fan of China.
He has reservations about long-term investments in China. Their banking industry is having huge bad loan losses. He has stepped gingerly into China with this stock. Likes the company and management.
Old mining in China. They will be in production in Q2, which will represent about 120,000 oz. of gold with “out of the ground” cash costs of about $2.50 an ounce. Very profitable situation. This will give them the cash flow without any further shareholder dilution, to explore their other properties.
From 2003 two 2005, the stock dropped from $5 to about $.50 and since then has made a major base building. Broke out in February and is now in a secondary accumulation. Look for a breakout from this secondary accumulation (About $2.20 - $2.30.), which is probably the next major up leg for it.
Did well and stayed above its 200-day moving average but had a break down at about $2.50. Since then the stock has been falling. Should possibly find support around $1.
Made a wonderful base in 08-09 and then broke out. Had a wonderful rise into early 2010. Pulled back in the middle of 2010 but rose again and fell again this year. In a very wide trading range. 200 day moving average is turning down and the stock is below that. If you own, put a stop loss at around $4. $5-$5.10 would indicate a new breakout.
Listed in Canada but operations are in the far east. Is cautious because of high debt and accounting is weird. If you are betting gold will go a lot higher it is a pretty decent bet but if not it can decline a lot.
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