Golden Star Resources (GSS), after dropping 73% from December 2, 2003 to May 2, 2005, looks to be shaping up nicely for a rally. Sorry that I don't know how to post charts. A picture is worth 1,000 words!
Here are the patterns and upside targets:
Pattern #1: Descending Triangle
Data Points:
Connect the highs of January 25, 2005...April 7, 2005...May 10, 2005.
Connect the lows of March 2, 2005...May 2, 2005.
The May 10, 2005 tag of the upper trendline validated the trendline. You need at least 3 data points on any trendline for it to be valid, otherwise, you're just arbitrarily connecting any two data points and personally assigning some meaning to it. We need the market to tell us that the trendline is meaningful by showing us that there is support or resistance there.
On May 10, GSS failed the test of the trendline, which validated it as meaningful resistance.
May 23, 2005, GSS gapped higher out of the pattern, and closed at the high of the day. I would like to have seen more volume, but it was a bullishDescending Triangle pattern breakout nonetheless.
Descending Triange Pattern Breakout Targets IN PLAY:
1. The January 24, 2005 top of the Descending Triangle: 4.08
2. The height of the pattern (4.08 high - 2.33 low = 1,75 pts....added to the point where GSS broke out on May 23, 2005 at 2.62) 1.75 points + 2.62 = 4.37
After the Descending Triangle breakout, GSS rallied toward the most recent high of 3.10, which was on April 7. It rallied to 3.05 on June 2, 2005, forming:
Pattern # 2 - Small Ascending Triangle
Data points:
Connect the highs of April 7 and June 2
Connect the lows of May 2 and May 16
That pattern broke out on June 10. Again, I'd like to see more volume. The breakout got violated on the June 14 close below the breakout, but we've remained above the top of the pattern ever since.
Small Ascending Triangle Breakout Target IN PLAY: 3.82
(Height of the pattern...3.10 - 2.33 = 0.77...added to the breakout at 3.05. 3.05 = 0.77 = 3.82)
Pattern #3: Large Ascending Triangle
Data Points:
Connect Highs of March 10 and June 16
Lows are the same as the Small Ascending Triangle.
It hasn't broken out. If it does, it also puts Target: 4.37 IN PLAY, same target as the Descending Triangle breakout.
With compliments ;D
I save the "picture" to a file on my desktop, click on "additional options" under the message I'm writing, and find the "picture" in the file.
It took me a while to get it right, I was afraid to upload my whole harddisk...but it seems to work.
Have fun!
I still haven't figured out how to edit and draw lines on the charts - ask EliteG, he can do all those nifty things ;)
Cheers!
lol, nifty things 101
1. You can pay for a stockcharts.com subscription. You can even get realtime and therefore have a backup realtime system if your system goes down.(this has happened to me) I pay around $30 a month for it. You can draw trendlines, arrows, circles, highlight, fib retrace, put notes, and a lot else on this chart. You can upload the annotated chart to a list and it will update with the movement of the stock.
2. The Free Way: open up the image you have saved in paint. Use the line tool in paint to draw in lines.(make the lines thicker) Circle tool is useful. Text is a pain but doable.
**saving an image** - if you have a chartup on the screen that you want(or any image) you can capture it with 1) a capture utility or 2) by pressing the printscreen key on your keyoard. When you press the printscreen key on your keyboard it saves the image to the clipboard. You then open up paint or some other image editing program and paste it in there. You can paste by holding the ctrl key down and pressing V at the same time...or look in the Edit tab. Save the image and remember where this is! Oh save as a.jpg or .gif You cannot post an image that is bigger than 150 kb i believe.
**to post image** - When you are writing a post in 3stocks there is a button underneath the text editor called Additional Options...you hit that and then hit browse to locate the chart saved on your computer. If you want to attach more, hit the more attachments button.
Thats what I do. 8)
Melf Elf - do you use log scale or linear charts?
Thank you, Cumulina and eliteG for helping me. Applaud you both. And, thanks for the chart, Cumulina. It gives a picture of what I described, even though the trendlines aren't drawn. No problem. People can "eyeball" it.
I copied the posting directions from you both. I have a friend who is very good at understanding computers, so hopefully he can read the directions, and help me figure it out ::)
I have Metastock charts. I pay $35/month to download the data, so I'd like to use those charts, if I can. I already have trendlines etc. drawn on my charts, so it would save me time. And, $30/month additional for Stockcharts :)
eliteG, I generally use linear charts for stocks like General Electric (GE) that don't have big percentage moves. For a stock like AKS that rallied almost 1,000% from September, 2003 into its February, 2005 high, I use a log chart. It puts the huge percentage move into perspective. On a log chart, a move from 5 to 10 is 100%, and a move from 10 to 20 also is 100%. Equal weighted moves, even though the entire move really is 300% from 5 to 20, not 200% Log charts make those moves look less parabolic.
Sometimes I'll try both, to see "what works." If either of them shows me three or more hits to a trendline, I'll use that. I consider validated trendlines (3 or more hits) to be important because the stock clearly is responding to it on the third hit (and on any additional tags) as support or resistance.
GSS is a good example. There are 3 data points on the January 24, 2005 down trendline (listed above in my origianl post). When GSS broke out on May 23, 2005, it was on a gap up opening, and the stock finished at its high of the day. That validated trendline was important, and players jumped in when they saw that resistance get broken to the upside.
Good example of a "gap and go," too. It's okay to buy those when it's a pattern breakout, even though we've all read, "NEVER buy a gap up opening."
Thanks again for you help!
May I get in on this? I guess we all can learn from each other by discussion.
IMHO....I see a , Falling Wedge (reversal).Which is a bullish pattern that begins wide at
the top and contracts as prices move lower.The price action forms a cone that slopes down as the reaction highs and reaction lows converge.Falling wedges definitely slope down and have a bullish bias.but this bullish bias cannot be realized until a resistance breakout.
I placed the lines on the chart from the points you gave in pattern #1.Hopefully I accomplished this feat.
In my way of thinking, I come to see the Descending Triangle as a bearish formation that usually forms during a downtrend as a continuation pattern,and this pattern indicates distribution
Giving meaning to the Ascending Triangle (continuation),is a Bullish formation that usually forms during an uptrend as a Continuation pattern and this pattern indicates accumulation.
This is just IMHO.
But if we all can debate,we can learn from each other.I know I have learned from other members here already.
Oh, forgot...I do like your stock find and have placed it on my watch list for a possible buy.
I do applaud you.
I think the descending triangle is usually broken to the downside but if broken topside can be a powerful long move. Vice-versa for ascending triangle. In fact any set pattern that gets broken n the opposite direction can lead to a very powerful move. Especially true with candlestick patterns. You see a hammer bottom get broken to the downside..it could definately lead to a good short. The flip side ;)
This is another take on the chart:
I always like to read what you have to say.
I like the way your head hammers out things.The debate of the matter, will help us all when it comes to stock picking.Let the knowledge of others sink in our own skulls. ;D
The final out come we can all make more $$$$$$$$$$$$ ;)
Quote from: setravis on June 26, 2005, 12:11:58 PM
I always like to read what you have to say.
I like the way your head hammers out things.The debate of the matter, will help us all when it comes to stock picking.Let the knowledge of others sink in our own skulls. ;D
The final out come we can all make more $$$$$$$$$$$$ ;)
thx setravis, way to pick out the bullish falling wedge, and I agree debating T/A can only help. 8)
Quote from: setravis on June 26, 2005, 11:35:56 AM
May I get in on this? I guess we all can learn from each other by discussion.
IMHO....I see a , Falling Wedge (reversal).Which is a bullish pattern that begins wide at
the top and contracts as prices move lower.
Setravis,
You are absolutely right...Pattern #1 that you have so beautifully drawn and posted (thank you, and applause), is, indeed, a Falling Wedge Reversal, not a Descending Triangle, as I said. I often say one, when I mean the other.
Wedges and Triangles are tricky. They usually are continuation patterns, and are resolved in the direction of the current trend, but they also can be reversal patterns. In GSS, for example, there was a symmetrical triangle that formed between November 17, 2004 and February 2, 2005. The trend in the stock was down. On February 3, GSS gapped down out of the symmetrical triangle from 3.54 and continued its bearish trend into the May low of 2.33.
The falling wedge reversal that you have shown on your nice chart (breakout was May 23) still could end up being bearish here. We got a "relief rally," so to speak, but the bearish trend could continue, especially if we start doing things like breaking that uptrend line on eliteG's chart (thanks, eliteG!).
With Falling Wedges, one of the things that I look for is whether or not it "morphs" into other pattern/patterns. In this case with GSS, the Falling Wedge has "morphed" into two Ascending Triangles. In other words, the Falling Wedge is now part of those two patterns.
If we break the up trendline on eliteG's chart, we "could be" going down to form the right shoulder of an Inverse Head & Shoulder pattern. The bottom of the left shoulder would be the low on March 10....the neckline would be March 10 (3.37) and June 16 (3.32). Another possible "pattern morph."
When you get these "patterns within patterns," prior to a breakout, the stength of the "nested patterns" often leads to a nice move. The more "nested patterns" that there are, the better. "The bigger the pattern, the better the breakout."
This pattern in GSS has been forming only over a few months, so it isn't suggesting anything huge. But, maybe tradeable. If we rally to the top of the wedge at 4.08, for example, then do more consolidation over the summer, then we might get a better rally later on.
Melf Elf,
Thx for the reply. I like the way you think,and put down on paper what you have to say about a subject.Picking up on the knowledge of others helps me to become a better market player.I like to read and absorb this knowledge.
A well said post. Keep up the good work. ;)
Applaud.
nested patterns and morphing...thats great feels like I'm talking to a fellow engineer, lol 8)
BTW (by the way), I started watching the gold stocks a little more closely after I read an article (May 10) in Forbes Magazine by Jack Adams in which he said that he expected a rally from out of nowhere, like the one from the May, 2004 low.
The $HUI chart (Gold Bug Index) looked horrilbe, so I at least agreed with him that a rally would have to come from out of nowhere :)
On May 19 in Forbes, Curtis Hessler said that he saw $500 gold because the current bullion/XAU ratio of 5.25 was a screaming buy. I don't know anything about that, but I like to see what happens after I read stuff like that. Two bullish calls from Forbes. Okay, I watch it.
The HUI and XAU both made "V" bottoms on May 16, right between the dates of those articles. So far, these guys made pretty good calls :)
On June 7, Goldman Sachs downgraded the gold stocks. Interesting. What happened after that? Newmont Mining (NEM), the 500 lb. gorilla in this sector, completed the right shoulder of a "mini" Inverse H&S pattern two days after Goldman's call, then it broke out to the upside on June 16. Hmmm...the market clearly didn't agree with Goldman on that one.
After breaking out, NEM only got to the April 22 gap of 40.23, and hasn't been able to get above 40.34. There's alot of price resistance/supply above that level. NEM also put in some bearish-looking doji stars last week, so it might need to do some more work, but at least it stopped going down, and it did something bullish (Inverse H&S breakout on June 16)
If you look at the rally in NEM from May, 2004 to November, 2004, it wasn't pretty, pattern-wise, but it rallied 50%. Maybe the Forbes guys will be right. ???
Just some anectodal stuff on a Sunday...
I hear you Elite one!
I'm just an old southern boy.Nested patterns and morphing.
That "Morphing", must be what we old southern boys call one of them $2 words.
I like it....I love.... I want some more of it! :D
Keep up the good work guys......I'm just picking at you!
Quote from: eliteG on June 26, 2005, 01:44:17 PM
nested patterns and morphing...thats great feels like I'm talking to a fellow engineer, lol 8)
Not me! I have to call in the Army Corps of Engineers to screw in a light bulb for me ;D
It reminded me of dealing with nested loops and data morphing in school. Luckily I didnt pay to much attention to that and way more attention on learning stock trading. They didn't have that major(stock trading). ;)
When you were talking about the nested patterns I was already writing the pseudo-code in my head:
Falling[ascending triangles x 2]wedge = big boom
Will keep an eye on gold 8)
QuoteThat "Morphing", must be what we old southern boys call one of them $2 words.
setravis - thats just hilarious, lol :D
Quote from: eliteG on June 26, 2005, 02:30:34 PM
QuoteThat "Morphing", must be what we old southern boys call one of them $2 words.
setravis - thats just hilarious, lol :D
That is hilarious! I'm glad Setravis put me wise, in case anyone ever tells me to "Get morphed!" I'll understand that I'm probably not going to look much like an elf when they get finished with me :o
LOL...Guys. ;D
I ran across your post,while I was just sitting here so nested in my patterns.
All this has forced me to breakout my morphology book and get caught up.
Just when I think I'm educated.....my morphed up mind forgot the pseudo-code.
Heck guys....when i was in grammer school..many moons ago.The teacher tried to tell me,
That pie are square, I stood up and said no teacher....Pie are round. ;D
No breakout this week above the 3.37-3.32 neckline.
Instead, GSS broke below the up trendline on eliteG's chart above. That could be a blessing in disguise. If GSS goes down and forms a right shoulder near its 50DMA (currently 2.78), or validates and bounces off the up trendline (currently 2.70) from the May 3 low, we could be looking at a real nice percentage gainer here on a breakout above the 3.37-3.32 neckline, from a bounce off 2.70-2.77 support. A pattern breakout would put about 4.42 IN PLAY.
Keeping an eye on this one.
http://ts-lc.sc8.finance.lycos.com/1120032675828?User=demo&Pswd=demo&DataType=GIF&Symbol=AMEX:GSS&Interval=D&Permission=1000&Ht=400&Wd=600&Display=2&Study=MA&Param1=50gss&Param2=0&Param3=&FontSize=10&LocaleID=0x0409
I need to change the name of this thread to: GSS - FOUR Bullish Patterns. :)
Instead of heading down to the 2.70-2.77 area, yesterday, GSS rallied back to eliteG's broken up trendlne. The prior day's hammer becomes the fourth data point of a bull flag that has been forming since the mid-June high of 3.32. That's bullish pattern formation #4.
A breakout above the 3.37 - 3.32 neckline should be a good one, with four bullish patterns nested within the 5-month Inverse H&S pattern.
http://ts-lc.sc8.finance.lycos.com/1120032675828?User=demo&Pswd=demo&DataType=GIF&Symbol=AMEX:GSS&Interval=D&Permission=1000&Ht=400&Wd=600&Display=2&Study=MA&Param1=50gss&Param2=0&Param3=&FontSize=10&LocaleID=0x0409
GSS had a gap up breakout above Bullish Pattern #4: The June Bull Flag. It pulled back to 3.15, and currently is back above the bull flag breakout, currently at 3.21 BID...3.22ASK, up $0.02.
http://ts-lc.sc8.finance.lycos.com/1120032675828?User=demo&Pswd=demo&DataType=GIF&Symbol=AMEX:GSS&Interval=D&Permission=1000&Ht=400&Wd=600&Display=2&Study=MA&Param1=50gss&Param2=0&Param3=&FontSize=10&LocaleID=0x0409
Here are the charts I posted on the board weeks ago... (GSS/LF/ VCLK)
http://www.3stocksonfire.org/trading/index.php?topic=654.0
Quote from: calven on June 30, 2005, 11:29:36 AM
Here are the charts I posted on the board weeks ago... (GSS/LF/ VCLK)
Oops...just saw your post. My apologies, Calven. I joined the board a few days after your post, and didn't see it.
GSS still is working on Pattern #4. I thought I'd review it because the nested patterns have the potential to be very explosive if we get a breakout above 3.32, and because eliteG created a monster when he taught me how to post my "pizza" charts. >:D I hope the chart isn't too cluttered to read:
Hi Melf elf and Calven,
Here is another take on the technicals.
I am not sure what the name of the pattern is, but I call it the money in the bank
pattern :)
Resistance seems to be above 3.5 and we just need a reversal in gold price to get
there.
Quote from: Michael on July 12, 2005, 06:55:42 AM
I am not sure what the name of the pattern is, but I call it the money in the bank
pattern :)
I like the"Money In The Bank" pattern. ;) On my screen right now, GSS is $3.15 BID...$96.00 ASK. ??? That would put some money in the bank! :o
So far, NEM is getting the job done today (see my post in that file from this morning). NEM is up $1.00, and above the channel.
GSS still is in this 4th Bullish Pattern, the bull flag. It's up $0.10 at 3.09 BID...3.10 ASK. Note that there are three hits at the top of flag, validating it as resistance. A breakout above that (for today, about 3.16...it declines daily) should be signficant. If GSS takes out the top of this bull flag, that measures to about 3.36. The key number for a breakout of all four patterns is 3.33.
Note that the last tag of the bottom of the bull flag was at the top of the Ichimoku Kumo (cloud), which provided support. GSS has been "walking on top of the cloud" ever since.
If you scroll back throught this thread, I have charts with the other patterns. You might want to keep this one on your radar.
Hi Melf,
Thanks for your chart updates (applauds).
Nice move by gold today. A little more of that and I think we will break out of the bull flag.
Mike
Quote from: Michael on July 22, 2005, 01:05:22 AM
Hi Melf,
Nice move by gold today. A little more of that and I think we will break out of the bull flag.
Mike
Sure would be nice :)
This has taken awhile to develop and there's always the chance that it won't break out at all, of course, but after an 18 month downtrend, I like the fact that over the past six months, GSS has built these four nested bullish patterns to go up against all of that overhead resistance on a breakout.
Quote from: Michael on July 22, 2005, 01:05:22 AM
Nice move by gold today. A little more of that and I think we will break out of the bull flag.
Mike
Well, Mike, GSS closed right at the top of the bull flag, for a 4th tag of that trendline.
On any weakness though, Friday's candle is a hangman. The tail (3.09 - 3.13) is exactly twice as long as the real body (the open and the close were two points apart...3.13 and 3.15). If Friday's low of 3.09 gets taken out, GSS could head back down toward the bottom of the flag.
What has me thinking that GSS still might not breakout here is the fact that NEM's high on Friday was right at DOUBLE resistance for the second day in a row :(
I don't want to over-emphasize NEM. GG, for example, made a new 52-week high on Friday while NEM stalled out at resistance, but it would help out the gold stocks in general, I think, if NEM could take out 38.80-38.09 resistance since it's so heavily weighted in the gold stock indices. I'll post an updated chart in the NEM folder.
Hi Melf Elf,
It seems that the analysts are changing their view on the outlook from being short term bearish and long term bullish to both short and long term bullish:
QuoteLONDON: Gold prices will rise this year and next on renewed dollar weakness, strong investment and global security jitters that will confirm its status as a haven for money, a Reuters poll has showed.
The global poll of 30 analysts and senior traders arrived at a median average gold price of $433.25 per troy ounce in 2005, up 0.75% on a similar poll conducted in January and up 4.8% on 2004's average bid price of $413.56.
The rising trend was seen spilling into 2006, with analysts predicting an average of $450, a sharp reversal from the January poll, which saw prices falling back to $4130.
The highest forecast for next year came in at $500.
"Under our broader economic scenario of slowing growth, the dollar is likely to come under renewed pressure in the second half of this year and that should lead to gold surprising on the upside," HSBC metals analyst Alan Williamson said.
From other sources it seems like the London Bombing and the Yuan revaluation will also have an impact.
All in all we should see a positive week for GSS.
For a discussion on gold and gold stocks see the GG thread: http://www.3stocksonfire.org/trading/index.php?topic=1135.msg11240#msg11240
Nice rally in the gold stocks today. A few..
GSS up 7.6%
BGO up9%
GG up 5.1%
MDG up 6%
NEM up 4%
It's taken awhile for GSS to break out of this bullish channel, but it's well above it today. 3.33 is the bigger pattern breakout.
GSS currently is BID 3.25...ASK 3.26
Quote3.33 is the bigger pattern breakout
GSS has printed 3.34, so that's a technical breakout of the bullish patterns that have formed over the last six months (see past charts). GSS alrealdy is up 10.2% today, so it might have difficulty expanding on the breakout. I'd like to see it close at this price.
GSS currently is BID 3.32...ASK 3.33
Hi Melf elf
Congrats, we have waited a long time but it seems like the market finally recognise the potential in GSS.
Earnings is out after the close today. From the trading it seems like we might have a small surprise there, but lets see!
All golds having a great day. Wonder if its something to do with the Bush administration going back to 30 yr Tbill next year.
Usedcasting,
You are right. It is quite an impressive move by Gold today. It is however nice to see some relative strength.
Quote from: Michael on August 03, 2005, 02:42:49 PM
Hi Melf elf
Earnings is out after the close today. From the trading it seems like we might have a small surprise there, but lets see!
Thanks, Mike, I didn't realize that they report today. GSS sure is poised to go higher out of the four bullish patterns if the market response to earnings is okay.
Melf elf,
It seems like the earnings will first be signed off later today. Allan Marte is flying to Toronto as we are speaking.
They will apparantly meet or beat the expectations but have a bullish outlook (according to the rumours)
Earnings are out. They beat the revenue forecast but miss the EPS with 1.5 cents.
I have to say that I had hoped they broke even this quarter but when that is said the rest of the earnings release is stellar:
- They finally connect Wassa to the grid in June and the production cost fell from $472 per ounce to $333 this alone should guarantee that next quarter will be profitable.
- The construction on the Bogoso sulfide expansion project commenced on June 13. When commissioned, the sulfide plant is expected to produce 260,000 to 290,000 ounces of gold per annum at an average cash operating cost of $250 to $270 per ounce.
- They exceeded the revenue forecast with 38%
- They have secured $50 million financing for the Bogoso project by issuing convertible notes, maturing on April 15, 2009, to a private investment fund. The notes were issued at par, bear interest at 6.85% and are convertible to common shares at $4.50 per share. That is a 36% premium compared to yesterdays close!
I am not sure how the market will react to the result. There might be some initial disappointment about the 1.5 cent miss on the forecasted EPS. The report seems however bullish from my perspective. I will buy on any significant weakening of the PPS. Target would be just below $4.5.
I have now added to a number of my position so I will have to sell a few shares today. I haven't made my mind up yet but the following are sacred:
VPHM
RANGE
GSS
DHB (Unless it breaks 4.61, which is my target for the reversal)
NLG.TO
AOB
DNDN
BNT (unless it goes through $17 today)
Mike
QuoteI am not sure how the market will react to the result. There might be some initial disappointment about the 1.5 cent miss on the forecasted EPS. The report seems however bullish from my perspective. I will buy on any significant weakening of the PPS. Target would be just below $4.5.
Good read on the market's reaction to earnings, Mike, and thanks for the additional information. Applause. There was initial disappointment at the open. The first few trades were:
3.17...1800 shares
3.17... 400 shares
3.20....600 shares
3.14....1500 shares
Then the big boys stepped in:
3.26...87,000 shares
3.26...60,400 shares
After trading in the low-to-mid 3.20s all day, there also were some buys at the close:
3.27....8,600 shares
3.29...13,100 shares
3.29...9,900 shares
GSS closed right at the top of the four bullish patterns that have been forming over the past six months, so not a bad reaction at all to the earnings, especially given yesterday's overall down market.
The four bullish patterns measure to about 4.30 on a solid breakout, but that doesn't mean that GSS couldn't go higher, or even muich higher.
just Fyi:
08/05/2005 (10:19 ET) GSS: NBF Keeps @ Sector Perform; Cuts Tgt to $3.25 vs $3.75 - Knobias
08/05/2005 (09:29 ET) GSS: BMO Nesbitt Cuts to Mkt Perform from Outperform
- Knobias
08/04/2005 (15:00 ET) GSS: Scotia Cap Cuts to Sector Underperform from Sector Perform - Knobias
Quote from: la-onda on August 05, 2005, 04:04:54 PM
just Fyi:
08/05/2005 (10:19 ET) GSS: NBF Keeps @ Sector Perform; Cuts Tgt to $3.25 vs $3.75 - Knobias
08/05/2005 (09:29 ET) GSS: BMO Nesbitt Cuts to Mkt Perform from Outperform
- Knobias
08/04/2005 (15:00 ET) GSS: Scotia Cap Cuts to Sector Underperform from Sector Perform - Knobias
Thanks for that information. Applause.
It's always difficult to know how analysts' upgrades and downgrades will affect a stock. Given that the last of the three downgrades was on Friday morning, GSS hasn't reacted too badly. It's still at the top of the six-month range, although Friday has the look of a Bearish Hangman. If so, there should be support starting at 3.07.
It will be interesting to see if the downgrades have a more significant negative effect, or if GSS can breakout, despite them.
QuoteGiven that the last of the three downgrades was on Friday morning, GSS hasn't reacted too badly. It's still at the top of the six-month range, although Friday has the look of a Bearish Hangman. If so, there should be support starting at 3.07.
After the analysts' downgrades, GSS found support at 3.10 and now has broken out of the Four Bullish Patterns on good volume. GSS currently is up 6%, to 3.42.
Way to stay with this one MELF ;) (applaud) a great move today for GSS, showing it wants 4 bad >:D
Quote from: eliteG on August 11, 2005, 01:33:22 PM
... a great move today for GSS, showing it wants 4 bad >:D
Thanks, eliteG. If GSS can't get
at least to 4.00 after breaking out of FOUR bullish patterns on 3 times average daily volume, I might totally lose my faith in TA. These false breakouts that I've been playing this summer have been really irritating. >:(
Nice call on MCD yesterday. Applause. By the time I read the folder, it was at 34.50! ;D
BTW, I forgot to confirm that I got stopped out of the NVEC trade last Friday afternoon for a 1.5% loss on the close below the up trendline. It looked like the trade was going to work out on the rally to 16.75, but it died at the close. I've been watching another one that I like as a potential short squeeze: OVEN. I'll start a folder on that one. Take a look at it, if you're interested.
I've been holding GSS since May. After the recent breakout of FOUR bullish patterns, I didn't think that there would be any problem getting at least to $4.00. Think again...I've
got a problem. lol.
GSS not only has come back inside the pattern, giving us the possiblity of ANOTHER false breakout, it's also threatening to break the up trendline off the May low. If GSS is set to close below 3.13 today, I'll sell it.
That would be a shame after these four beautiful bullish patterns looked so promising, but "Don't turn a winner into a loser."
Quote from: Melf Elf on August 18, 2005, 06:02:07 AM
If GSS is set to close below 3.13 today, I'll sell it.
With ten minutes to close, GSS currently is BID 3.13 - ASK 3.14. The low of the day is 3.12.
Man, is this irritating. >:D
I'm using a log chart (below), and I really can't tell if the trendline is 3.12 or 3.13. On a linear chart, it's way down there at 3.03, but the up trendline wasn't validated on the linear chart. It was on the log chart.
The 50DMA is at 3.12.
Given how bullish this chart has acted and how long I've held it, I'm going to have to hold GSS if the close is 3.12, the low of the day. If the close is 3.11, or below, I'm definitely selling.
Last trade was 10,000 shares at 3.14. It's okay for today, but it sure needs to rally out of here.
Sold GSS at 3.07 when it was apparent that it had opened near its high of the day and that it would close below the green up trendline basis the log chart (first chart below).
Tough decision because GSS hasn't broken the green up trendline basis the linear chart (second chart below), but that trendline wasn't validated. On the log chart, it was.
Deciding factor in selling: I've held this one since May, and I wanted to preserve some profit and not turn a winner into a loser.
I'm buying GSS for the 3 Stocks on Fire Portfolio at today's open. Details at the update after the closing bell.
(This recommendation was made by David Randolph from 3 Stocks on Fire, and he will update this analysis everyday after the close until he sells the stock. The 3 Stocks on Fire Portfolio is up 159% since inception on 28th of April 2005 (http://www.3stocksonfire.org/3stocksonfire.php). 3 Stocks on Fire is a Community of stock traders and investors. Our 3630 members exchange trading ideas and strategies on our message boards everyday. We welcome you as a new member of the 3 Stocks on Fire Community, please take 10 seconds to register (http://www.3stocksonfire.org/trading/index.php?action=register) and receive our free newsletter)
I bought GSS on a bullish after a gap up and the stock corrected a bit on profit taking. In fact, it came down to make a retest to the broken resistance, now support, at $3.48.
I'm very bullish on gold and will hold GSS through this session whatever happens.
The short term technical picture for GSS is bearish. I will hold the stock anyway, because it is still too early to sell (I still don't know if this trade is a winner or a loser) and I'm bullish on the gold sector fundamentals - primarily because of the recent decoupling from the USD.
Nice response from GSS to my doubts, a 7.8% rise 8)
Since gold is the only game in town and I'm playing what else could I do but to continue holding GSS? I will not only hold all my four gold related stocks, I will look to buy some more. I want more gold in my portfolio, the gold market had a very important macro economic shift and the big long term bull market which started in 2001 is starting long wave 3, the longest and biggest of all, according to Elliot.
It is still too early to know if these gold sector trades will be profitable or not. I believe they will.
There were reports of some insider buying on GSS which is always a good sign. I will continue holding the stock.
7,8 steps forward 4,3 steps back. On average that is up ;)
I'm in there with you David and also have confidence!
Ready for the steps up again!
As you can see on the charts above I've been having some problems designing some technical guidelines for GSS. Everyday I show you different lines, and that means the technical picture isn't clear for GSS.
Anyway the short term trend is up without doubt. I will continue monitoring GSS and analyzing it until I find a technical pattern which I can trust.
For now I'll leave you the charts below and say that I will continue holding GSS.
Nice move up yesterday, I'll continue holding GSS.
Trading has been halted pending this news: Should be good in the mid to longer term :)
DENVER and VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 27, 2005--Golden Star Resources Ltd. (TSX: GSC - News; AMEX: GSS - News; "Golden Star") and St. Jude Resources Ltd. (TSX.V: SJD) ("St. Jude") are pleased to announce that they have signed a pre-merger agreement whereby Golden Star will acquire all of the outstanding shares of St. Jude (the "Transaction") on the basis of 0.72 of a Golden Star common share for every St. Jude common share. The Boards of Directors of both companies have unanimously approved the Transaction, completion of which is conditional on the execution of a definitive agreement, approval of St. Jude shareholders, requisite regulatory and court approvals as well as satisfaction of other customary conditions. The pre-merger agreement provides Golden Star with customary deal protection mechanisms.
The terms of the Transaction imply a purchase price of CDN$3.10 per St. Jude share (based on the closing price of Golden Star on the TSX on September 26, 2005) representing a premium of 38% to the 20-day average closing price of St. Jude common shares on the TSX Venture Exchange. Upon completion of the Transaction, St. Jude shareholders would own approximately 19% of Golden Star on a fully diluted basis. The transaction would be highly accretive to Golden Star's net asset value per share and is expected to be accretive to cash flow per share from 2007.
St. Jude's principal assets are the Hwini-Butre and Benso projects at the southeastern end of the prolific Ashanti gold belt region in Ghana. Together, Hwini-Butre and Benso have total near surface attributable measured and indicated resources of approximately 15.1 million tonnes at an average grade of 2.71 grams per tonne for contained gold of about 1.3 million ounces.(1)
In addition, St. Jude has several other highly prospective advanced exploration projects in Ghana, Burkina Faso and Niger.
Peter Bradford, President and CEO of Golden Star, said: "The acquisition of St. Jude delivers properties in Ghana with high-grade non-refractory gold resources that are within haulage distance to our Wassa gold mine. In assessing development scenarios for these properties, we will consider both stand-alone development options and the opportunity to mine and haul this high-grade material to Wassa, extending the mine life and increasing production at lower cash costs with minimal additional capital investment."
Mr. Bradford continued, "St Jude's properties outside of Ghana also offer Golden Star the opportunity to broaden and diversify its activities in the region, particularly into Burkina Faso where we see a number of exciting opportunities."
Michael A. Terrell, President and CEO of St. Jude, stated: "This transaction delivers an immediate and attractive premium for our shareholders and allows them to participate in the ongoing development and upside of not only St. Jude's quality assets but also Golden Star's existing projects."
The Transaction is expected to be implemented through a court-sanctioned plan of arrangement pursuant to the Canada Business Corporations Act and to close by mid-December. Upon closing of the Transaction, Mr. Terrell will join the Board of Directors of Golden Star.
BMO Nesbitt Burns is acting as financial advisor to Golden Star. Salman Partners and Haywood Securities are acting as joint financial advisors to St. Jude and have provided advice that the consideration offered under the Transaction is fair from a financial point of view to the shareholders of St. Jude.
About Golden Star
Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, the Company has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in West Africa and in the Guiana Shield of South America. Before the benefit of this transaction, production is expected to increase to over 500,000 ounces in 2007, compared to expected production of approximately 220,000 ounces in 2005. Golden Star has approximately 143 million common shares outstanding.
Thanks for posting the news on GSS healey :)
What an awful day for GSS. My bullish case for gold moving forward was seriously affected and some doubts sparked in the back of my head.
I'm bearish on the general market because the economy and earnings are about to slow and that's not inflationary, that's deflationary !
I don't know, but the fact that Gold rose against a rising dollar might be just the end of the bull market in gold, now that everyone is so bullish.
I don't want to think too much, I'm in doubt, so I should be out. That's what I'm going to do, selling all my gold stocks today.
David: I didn't think gold would be an underperformer in a deflationary environment, but I did a little searching to make sure. Hasn't gold tradionally been a "safe haven" during both inflationary and deflationary periods?
I found this at http://www.endeavourfinancial.com/newspopup.php?news_id=5 :
from
A Tarnished Dollar Will Put The Shine On Gold
By Frank Giustra
"Although most people believe gold performs only in an inflationary environment, they might be surprised to learn that 200 years of U.S. history has shown hoarding of gold occurs during deflationary periods when confidence in the credit quality of issuers of currency (whether sovereign or banks) is shaken. Given the current high level of foreign ownership of U.S. assets, if credit quality is called into question there will be immense downward pressure on the dollar as these holders rush for the exits. In this scenario, gold would rise in U.S. dollar terms. In a global deflation environment, which is very possible today, there would be an exodus of all major currencies, with gold being the only beneficiary. "
Gold futures are at $518 an ounce this morning. I know GSS was stupid enough to hedge some of its gold production, selling calls and buying puts, but it wasn't all the company's production and the higher the gold price, the better for the company.
The market cap is $376M, where as for other gold companies almost always it exceeds $1B, even for those that almost don't sell any gold, it's amazing.
Well, I don't know enough to justify this buying of GSS at this moment, but look at this chart:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=11165;image)
Notice the huge volume and the long white marubozu. Maybe something is going on behind the scenes that changes the dread fact that GSS isn't rising like everybody else in the gold sector.
I've read on the company's results that gold mining production is increasing. The gold price is also rising as everybody knows. They would have to be too damn stupid not to benefit from these two factors: rising production and rising selling prices.
I don't think they can be that stupid. Now the market is saying they aren't.
So I'll buy GSS at today's open for the 3 Stocks on Fire Portfolio, 6.66% of capital, as always.
Great find... :D
Technically we have a gap of breakout and a white marabozu on high volume !
David , we have a news on this,,, If there is something I don't like of the minning co's is there are always asking for other's people money >:( most of them do ,,,
Golden Star Resources Ltd.-New Issue
THURSDAY, DECEMBER 08, 2005 4:14 PM
- BusinessWire
TORONTO, Dec 08, 2005 (BUSINESS WIRE) -- Golden Star Resources Ltd. ("Golden Star") (CA:GSC) (GSS) has today entered into an agreement with a syndicate of underwriters co-led by BMO Nesbitt Burns Inc. and Blackmont Capital Inc. under which the underwriters have agreed to buy 29,200,000 Common Shares from Golden Star and sell to the public at a price of C$2.80 per Common Share, representing an aggregate amount of C$81,760,000. Golden Star has granted the Underwriters an option to purchase up to an additional 4,200,000 Common Shares, exercisable until 48 hours prior to the closing date, which is expected on or about December 30, 2005.
A preliminary short-form prospectus for the Canadian offering will be filed with the applicable Canadian securities regulatory authorities. A shelf registration statement for the U.S. offering was previously declared effective by the U.S. Securities and Exchange Commission and a preliminary prospectus supplement will be filed with the SEC
AH down 5% to $2.52 with 73k shares traded due to the news - share dilution.
That is the beauty of day trading. I bought this morning and closed my position at $2.78 about the top of its range. No overnight risk.
December is only 1 week, my whole portfolio gained 6% so far and no overnight holding.
I can sleep at night. Today, NVAX gained about 10% and SVA and AOB may be bottomed (just may be, waiting for bullish signal).
Bastards! >:(
LOL, after my 10,000 accident, i sold for a loss and put it in here, i can not find AH loss that you are mention, but i hope this is not for real.
I did find it. >:(
http://www.google.com/search?sourceid=navclient&ie=UTF-8&rls=GGLD,GGLD:2005-11,GGLD:en&q=gss
After Hours ECN: 2.54 -0.12 (-4.51%) 8 Dec at 6:56PM ET
Here is the table which listed the best performers in GOLD mining sector during last 4 weeks.
Amonth 61 stocks in this secotr, only 2 losses and 59 gainers. Gold is onle of the best performer among 100 sectors.
Number 1 in the sector is GBN gained 55.81%, number 2 MNG 53.03%, ...
Bad luck on GSS, right after I bought it we got news of a share placement and dilution ::)
Well, a speculator needs to be prepared for this. What to do now?
The offering price is C$2.80 per common share, for 29,200,000 shares. At current exchange rate, C$2.80 = $2.416. That's no good, the offering price is below the current market price.
Why should one buy at the market at an higher price if he can buy at the offering for a lower price? So probably the stock will trade lower than $2.42.
The rally of the last couple of days is quite strange, didn't smart money knew this was coming? Why the rush to buy just before such bad news? This is unusual.
Why was GSS so weak relative to its peers over the last couple of months? Because of it's hedgies in gold? Or was it that insiders knew this private placement was coming and inside information spread across well positioned people?
I really don't know what's going on ... but all this doesn't change the fact that we have higher gold prices and higher production from the company, how can they do such harm to shareholders in an environment like this?
Hell, I feel stupid if I say «sell» at the open on these negative news.
Here's what I'll do: design a trading plan that doesn't allow me to lose my shirt trading this and then follow it. I see a gap to be filed just below the offering price, between $2.37 and $2.42.
GSS can't close below $2.37 or I'll dump it, losing about 11% on this gold trade.
(Lesson to be remembered: always buy the leaders, not the laggards. They are laggards for a reason. If the reason was this private placement, there was a «sell the rumor» effect and then we'll see the buy the news after the lower open. But if this wasn't the reason for the weakness, then new lows below $2.10 are coming).
I am not here to complain, no one likes that. BUT has this happen to you? or was i just that unlucky to have a HUGE hits in Xing, take all my money and put it in this and 5 hours a later a 15% loss. Im not upset, i know this is the game. What to do when one is down from 19000 to 14000 in 2 days? I know the answer is just brush off the knees and start again, slow and follow the plan. Just head is to cloudy. Dave i assume you will get out. I figure i cant stay in and hope it goes up, it looks that it has a road down if it does not float above 2.41
Regarding trading stocks in generarl, I'd say hang in there Capn'. I have had runs of bad timing and such before, and recently with VPHM and NVAX. I was able to recover a good bit of that lately by following the 3SoF plan in a modified way- I didn't buy all the stocks, traded a little less, and became a little more conservative. Hope things start going your way (http://mdteague.com/PDT_fire.gif)
Hi David,
I missed this phenomenal gold rush (only holding Rangy.pk which has done very well but that is a another story).
I am therefore also tempted to buy gold stocks.
GSS is an excellent long-term pick. They are sitting on some very valuable assets so I am not at all concerned that they raise money to develop these properties.
My main concern however is the gold price. I believe that the gold price reflects a speculative end of year bubble. Driven by demand from jewelry and the rumors about central banks buying. It is quite normal for gold to go up at the end of the year and fall back in the start of the next year as can be seen on the chart below.
I don't believe Central Banks will buy gold at 520 and the jewelry business will obviously slow down in January (in fact already at the end of December).
I think there will be a better entry point in Gold stocks in the beginning of 2006 when Gold might be at a lower level.
In the meanwhile GSS is probably one of the best gold stock to hold. The fact that the stock price has lagged the increase in gold should protect it if gold goes back down again and the $2.42 price for the share placement should provide a nice support.
Michael
Are you with us on GIGM ?! :P
Best,
Vova
Hi Michael,
<<My main concern however is the gold price. I believe that the gold price reflects a speculative end of year bubble. Driven by demand from jewelry and the rumors about central banks buying. It is quite normal for gold to go up at the end of the year and fall back in the start of the next year as can be seen on the chart below.>>.....This statement of yours I MUST disagree with. While very short term the gold shares and/or gold price may fall somewhat, it won't for long. What's not understood is the 'hidden hands' driving up the gold price EVEN with simultaneous increases in price in the dollar! Next year, I expect $580 gold.
gold should ( in my opinion ) almost immediately go to about $546, or so! Many will be surprised! Then a mild correction. The 'new' play should be palladium & SWC is the one to own 'cause it's just getting going. Palladium & platinum are SWC's forte'. Palladium should become a major demand item for catalytic converters ( cheaper than platinum ) & China is desparate to do air cleanup!
best to you...
willey
Hi Willey
This is what makes investing fun. You could be absolutely right GOLD could continue up short term and compared to earlier gold rush this one seems to be supported by fundamental supply and demand issues. I am however willing to take the chance and sit on the side line till the beginning of next year.
Here is a good article about the pricing of gold and gold stocks: http://www.resourceinvestor.com/pebble.asp?relid=15284
According to this it seems like gold stocks are pretty fair valued:
QuoteIllustrating their leverage to the gold price, our bellwether global gold index shows that year-over-year, gold stocks have improved their valuations by 51% from $163.20 per recoverable reserve ounce in December 2004 to $247.22 per reserve ounce today.
The gold price has increased 20% over the same period.
Over a longer period – since December 2002 – gold is up 42% whereas gold equities have almost doubled in value.
Global gold mining equities and gold securities are now worth nearly $160 billion, up from around a mere $30-40 billion when the gold price signaled a double-bottom in 2001.
By historic measures, gold equities are showing some overbought signals. On the basis of tonnes of gold required to buy all the world's mining stocks, you'll need well over 9,000 tonnes. That level has only been exceeded once before in November 2003 when it took 9,663 tonnes of gold priced at $398.35/oz to pay for the world's gold equities.
My bet is that speculators will take profit at the end of the year or start of next year. The price of gold is now well above any analysts forecast (see article) and some speculators are sitting on huge unrealised profits. To quote from the article:
QuoteThings that go up must come down, and it remains to be seen how strong the usual seasonal downdraught in metal prices will be as 2006 gets underway. With so much speculative involvement evident right now, any reversal would be vicious, but hardly terminal.
The long term bullish view on gold does however seems to be supported by fundamentals so I haven't bought my last gold stock yet!
Dear Vova
I am unfortunately not invested in GIGM at this point in time. This is not because I don't like what I see. I just missed the train :'(
I hope I will get a chance to buy a ticket for the next journey ;)
Mike
Quote from: puenthouse on December 09, 2005, 03:24:40 PM
I am not here to complain, no one likes that. BUT has this happen to you? or was i just that unlucky to have a HUGE hits in Xing, take all my money and put it in this and 5 hours a later a 15% loss. Im not upset, i know this is the game. What to do when one is down from 19000 to 14000 in 2 days? I know the answer is just brush off the knees and start again, slow and follow the plan. Just head is to cloudy. Dave i assume you will get out. I figure i cant stay in and hope it goes up, it looks that it has a road down if it does not float above 2.41
QuoteDave i assume you will get out.
Why did you assume this puenthouse? I specifically wrote in the newsletter: «HOLD, unless it is set to close below $2.37».
Anyway, don't worry about losses, it's not really losing if you learn the lesson ! I think you're overweight in just 1 or 2 stocks and that explains your losses. Don't try to recover quickly, forget about it, focus on doing the right thing and on long term performance. I'll write you a private message in a moment.
Michael, I'm very glad to see you on this GSS thread. The probability of this trade going well just increased some points :D
I talked about a gap between $2.37 and $2.42, and that was filled on Friday's session. Volume was so big that today I expect the stock to rebound vigorously. I'll continue with my plan of holding, unless the stock is set to close below $2.37, but I feel this trade will go well, perhaps very well, although it started badly.
Hi David, Being bullish on gold is great!
Being bullish on GSS is not the greatest move...GSS shareholders don't trust Mgt!
You can pick better stocks, I'm sure...
Try IAG
willey
This is what i meant by I assume, this behavor of the stock price. And by the time i come into work, i HOPE IT WILL STILL BE IN THE 2s
GSS was sold yesterday just before the close at $2.32 according to plan. Good luck for anyone that continues to hold the stock.
Hi Willey,
It seems that gold started its end of year retreat a bit earlier than we both expected (and so did GSS and IAG ;)).
So the big question is where the bottom is. As I said earlier I believe this gold rush has legs in real supply/demand issues so I could see the gold price stabilize at this level. I would however expect that gold will continue to be weak over the rest of December and could even fall further so I don't see any reason to jump on Gold stocks right now.
Michael
Hi Michael,
I see gold correcting to about $485, or so...then macd should set up for a good buy signal...probably in January
we've a big overbought condition to eliminate short term
my thoughts...
willey
Repost From the Technical Analysis Board - The Wolfe Wave Pattern Folder, in case anyone is interested:
GSS completed a Bearish Gartley on December 8, then gapped down from 2.64-2.66. GSS currently is 2.40.
I'm wondering if it's going to rally 10% here, to fill that gap.
Background:
1. The Gartley was a fairly decent symmetry of both time and price:
Time: A-C was 14 days; B-D was 11 days.
Price: The difference between the A-B rally and the C-D rally was four cents.
2. After the Gartley completed at 2.82 and GSS gapped down, it appeared to find support at the A-C trendline on December 13 when it closed less than a penny above it.
December 14, however, GSS closed a penny below that trendline, but the candlestick was an exact Bullish Inverted Doji Star Hammer (the open and close both were 2.27), but that candlestick only is bullish with upside confirmation.
3. We got the upside confirmation on Friday, when GSS printed 2.35, a penny above Thursday's high of 2.34, and when it also printed 2.36, a penny above Wednesday's Bullish Doji Star Hammer high of 2.35 (buy pivot), so at this point, Wednesday's close, which was a penny below the trendline, looks like a fakeout to the downside.
4. MACD (see chart, next post) is supportive of at least a gap-filling rally to 2.64; it ticked higher from its signal line on Friday. MACD might go up to the zero line, then fail there, but that would be okay as long as GSS rallies the 10% in the process, to fill the gap.
Summary:
The A-C trendline comes in on Monday, December 19 at 2.3096, so 2.31. (It rises 0.00884 per day).
If GSS pulls back a little to the buy pivot area, 2.34..2.35..2.36, I'm thinking about buying it for a 10% gap-filling rally to 2.64-2.66, with a close below 2.31 as a stop, or an intraday print below 2.28 (Thursday's low) as a stop.
Still thinking it over... ::)
GSS - MACD chart:
GSS is moving today. Anyone interested?
Yes, brandyjoco!
My buying price was 2.39.
Got this from yahoo today:
bizjournals.com
Miner raises nearly $76M
Friday December 30, 11:36 am ET
Golden Star Resources Ltd. has closed on its equity offering with a syndicate of underwriters.
The Denver company (AMEX: GSS - News; TSX: GSC - News) announced Dec. 8 its plan to sell 31.59 million shares of stock to the syndicate. The deal raised $88.45 million in Canadian currency, or approximately $75.8 million in U.S. dollars. Golden Star says the money will go for general corporate purposes and to fund development of its mineral projects.
The company owns majority stakes in several gold mines in Africa and South America. Golden Star expects its production to grow from about 200,000 ounces this year to more than 500,000 ounces in 2007.
Published December 30, 2005 by The Denver Business Journal
GSS did very well today. Some of the Gold stocks are undervalued and some are very high.
Hi,
The gold price has $580 written all over it ( short term ). May not take long! The hidden catalyst is IRAN & the fact that we will likely invade ( using Israel ) and bomb their deep underground Nuke facilities. This will ( when & if it happens ) greatly destabilize the energy sector as IRAN will shut its oil export activities!
Crude, in this case, could go to $100/barrel, IMO!
gold will then go to $750+ on its way to $1000+
Some fav's of mine have been RGLD, GG, GLG... New fav's of mine are USGL.OB, AUY, EGO, CBJ, SLW, PAL
good fortune to all...
willey
Hi folks,
Any investors here besides me in gold? Suspect not many!
Lack of believers says gold & golds to continue higher. Higher than anyone suspects!
:-)))
gold won't play out until much-much later & at much-much h :)igher prices
$750 likely, IMO
willey
I'm here. I have GSS and AUY.
Hi,
All JMHO, & based on my charts & the newfound strength ( it's actually gaining in strength ) in gold & the golds.
Silver is preparing to take off higher! Choose your fav for one heck of a ride!
Gold... starting to enter its next phase, IMO, where it will reach $580-pause & group a tiny bit & head on up to $680!...It won't stop there either... What's driving it? DEMAND world-wide exceeding supply & speculation building.
Check the really long term charts for your fav golds 'cause that's where they are heading! Gotta go back to '79/'80 to see this
Don't believe me?
Just watch!
but, what do I know?..........
willey
Update on financial results after market. Does not sound good to me... :-[ Audited results are worse than what stated before....
Golden Star Files Audited Financial Results for 2005
Golden Star Resources Ltd. (AMEX: GSS) (TSX: GSC) today announced its audited results for 2005. Golden Star had previously announced unaudited results on February 1, 2006, and this news release discusses the changes in our audited numbers from those in the earlier release. Full details can be found in our Form 10-K filed today with the SEC. (All currency is expressed in U.S. dollars, unless otherwise noted.)
SUMMARY OF RESULTS AND CHANGES
We incurred a net loss of $13.5 million, or $0.09 per share, on revenues of $95.5 million during 2005 versus net income of $2.6 million, or $0.02 per share, on revenues of $65.0 million during 2004. Our unaudited results had disclosed a net loss of $12.1 million, which was increased by $9.6 million of unrealized, non-cash mark-to-market losses on the hedge position in our approximately 53%-owned consolidated subsidiary, EURO Ressources S.A. and reduced by the French tax allowance of $3.3 million on the mark-to-market adjustment and the release of a $4.9 million Canadian tax valuation allowance arising from the use of capital tax loss carryovers relating to the March 2006 gain on the sale of the shares in Moto Goldmines Limited.
The $9.6 million mark-to-market loss in EURO increased our unrealized, non-cash mark-to-market losses on gold and currency derivatives to $11.8 million. A $2.4 million increase in interest expense and $1.4 million impairment write off of exploration properties were more than offset by a $4.3 million reduction in corporate development costs, a $1.1 million increase in royalty income, and tax provision credits that totaled $12.9 million. The tax provision credits included the amounts related to the EURO mark-to-market adjustment and the sale of Moto shares discussed above, and tax provision credits related to our Bogoso/Prestea operations.
QUARTERLY RESTATEMENTS FOR 2005 AND MARK-TO-MARKET REPORTING
In the first quarter of 2005, EURO implemented hedge accounting for its forward gold pricing derivatives established in January. EURO also used hedge accounting for additional derivatives acquired in August 2005. In completing our audited consolidated financial statements for 2005, it was concluded that, despite the fact that the derivatives are economically effective, EURO's forward gold pricing derivatives did not qualify for hedge accounting under Canadian GAAP, AcG-13, "Hedging Relationships", nor under U.S. GAAP No. 133, Statement of Financial Standards "Accounting for Derivative Instruments and Hedging Activities." As a result, EURO will restate its unaudited financial statements and Golden Star will restate its unaudited consolidated financial statements for the first three quarters of 2005. EURO and Golden Star will now be required to recognize unrealized, non-cash mark-to-market valuations of EURO's forward gold pricing derivatives through the statements of operations at the end of each period. During 2005, EURO and Golden Star recognized realized gains and losses from the forward gold-pricing derivatives in the statements of operations only in the periods in which they settled. Since EURO is an approximately 53%-owned subsidiary, the impact of these changes flows through to Golden Star's consolidated financial statements in the same amounts and in the same periods as in EURO.
The effects of the change on the results for the first three quarters of 2005 are as shown below:
----------------------------------------------------------------------
First Quarter Second Quarter Third Quarter
2005 2005 2005
----------------------------------------------------------------------
(millions,
except per As As As As As As
share) Reported Restated Reported Restated Reported Restated
----------------------------------------------------------------------
Loss on
derivatives $- $1.3 $0.5 $0.6 $0.5 $5.5
----------------------------------------------------------------------
Future tax
asset
provision 0.4 0.1 0.1 - - 1.7
----------------------------------------------------------------------
Net loss (1.4) (2.2) (3.6) (3.7) (3.3) (6.7)
----------------------------------------------------------------------
Loss per share
(basic) (0.01) (0.02) (0.03) (0.03) (0.02) (0.05)
----------------------------------------------------------------------
Future tax
asset 1.2 1.6 1.1 1.6 1.1 3.3
----------------------------------------------------------------------
Loan fees 1.1 0.2 1.6 1.0 1.0 1.0
----------------------------------------------------------------------
Fair value of
derivatives (1.0) (1.3) (0.5) (1.9) (0.6) (7.4)
----------------------------------------------------------------------
Other accrued
liabilities (10.3) (10.2) (13.2) (12.7) (23.3) (22.4)
----------------------------------------------------------------------
Golden Star expects to file an amended Form 10-Q for each of the three quarters of 2005 within ten days.
FINANCIAL SUMMARY
Year ended December 31, 2005
----------------------------------------------------------------------
2005 2004
----------------------------------------------------------------------
Gold sold (ounces) 200,968 147,875
Price realized ($ per ounce) 446 410
Cash operating cost ($ per ounce) (1) 383 250
Royalties ($ per ounce) 13 14
Total cash cost ($ per ounce) (1) 396 264
Revenues (in thousands $) 95,465 65,029
Net (loss)/income (in thousands $) (13,531) 2,642
Net (loss)/income per share ($) (0.09) 0.02
Net (loss)/income per fully diluted share ($) (0.09) 0.02
Average shares outstanding (in millions) 143.6 138.3
Average fully diluted shares (in millions) 146.8 143.7
Shares outstanding end of year (in millions) 206.0 142.2
----------------------------------------------------------------------
(1) See note on non-GAAP financial measures below.
Fourth Quarter 2005
(after restating the first three quarters' results)
----------------------------------------------------------------------
For the three months ended
December 31,
------------------------------
2005 2004
----------------------------------------------------------------------
Gold sold (ounces) 54,196 31,112
Price realized ($ per ounce) 486 437
Cash operating cost ($ per ounce) (1) 430 295
Deferred stripping adjustment 64 -
Royalties ($ per ounce) 15 14
Total cash cost ($ per ounce) (1) 509 309
Revenues (in thousands $) 27,744 15,233
Net (loss) income (in thousands $) (956) 591
Net (loss) income per share ($) (0.01) 0.00
Average shares outstanding (in millions) 146.7 142.0
----------------------------------------------------------------------
(1) See note on non-GAAP financial measures below.
SUMMARY FINANCIAL STATEMENTS
The following information is summarized and excerpted from the Company's audited consolidated financial statements included in our Report on Form 10-K filed today with the SEC:
Condensed Consolidated Balance Sheets
as of December 31
----------------------------------------------------------------------
($ in thousands) 2005 2004
----------------------------------------------------------------------
Cash and short term investments $89,709 $51,727
Other current assets 43,080 27,119
Property, plant and equipment 84,527 28,653
Deferred exploration 167,532 7,452
Mine properties 118,088 74,197
Construction-in-progress 36,707 51,159
Other long term assets 24,960 11,853
-------------------
Total assets $564,603 $252,160
----------------------------------------------------------------------
----------------------------------------------------------------------
Current liabilities $37,708 $17,480
Long term debt 64,298 1,707
Asset retirement obligations 11,393 8,660
Deferred income tax payable 45,072 -
Fair value of derivatives 7,263 -
Minority interest 6,629 6,353
Shareholders' equity 392,240 217,960
-------------------
Total liabilities and shareholders' equity $564,603 $252,160
----------------------------------------------------------------------
Condensed Consolidated Statements of Operations
for the years ended December 31
----------------------------------------------------------------------
($ in thousands, except per share amounts) 2005 2004
----------------------------------------------------------------------
Revenues $95,465 $65,029
Mining operations expense 79,609 39,095
Depreciation, depletion and amortization 15,983 8,096
Accretion of asset retirement obligation 752 645
General and administrative expenses 8,631 8,197
Corporate development expense 248 4,504
Abandonment and impairment of properties 1,403 470
Foreign exchange loss 574 280
Interest expense 2,416 -
Derivative mark-to-market adjustments 11,820 -
Gain on subsidiary's sale of common shares (977) -
Other expenses 1,190 1,365
------------------
Net (loss)/income before minority interest (26,184) 2,377
Minority interest (277) (1,277)
Income tax benefit 12,930 1,542
------------------
Net (loss)/income $(13,531) $2,642
------------------
Earning/(loss) per share - basic $(0.09) $0.02
Earnings/(loss) per share - diluted $(0.09) $0.02
----------------------------------------------------------------------
Condensed Consolidated Statements of Cash Flows
for the years ended December 31
----------------------------------------------------------------------
($ in thousands) 2005 2004
----------------------------------------------------------------------
Cash provided by operations $1,060 $13,910
Cash used in investing activities (67,489) (108,448)
Cash provided by financing activities 143,261 17,445
--------------------
Increase/(decrease) in cash and cash equivalents 76,832 (77,093)
Cash and cash equivalents at end of year $89,709 $12,877
----------------------------------------------------------------------
2006 GUIDANCE
Looking forward, the forecast for 2006 total production is approximately 300,000 ounces at an average cash operating cost of about $335 an ounce, benefiting from a full year's production at Wassa and the first production from the Bogoso sulfide expansion project. The 2007 forecast of approximately 500,000 ounces at an average cash operating cost of about $335 an ounce is based on a full year's production from the Bogoso sulfide expansion project.
Production at Bogoso/Prestea in the first quarter is expected to be about 20,000 ounces and is expected to gradually increase in the second and third quarters and to substantially increase in the fourth quarter as a result of the commencement of new production from the Bogoso expansion project. Cash operating costs at Bogoso/Prestea are expected to be high in the first quarter and to gradually improve through the subsequent quarters, averaging about $330 per ounce for the year.
Production from Wassa is expected to be about 24,000 ounces in the first quarter and is expected to gradually increase through the year as a result of increasing throughput and grade. Costs are expected to be high in the first quarter and to reduce in subsequent quarters as a result of lower strip ratios and higher gold production.
We anticipate total capital spending of approximately $155 million during 2006, with approximately $89 million of this expected to be used to complete the Bogoso sulfide expansion project. Cash on hand stood at approximately $89.7 million at December 31, 2005. At current gold prices (approximately $550 per ounce) we expect both Bogoso/Prestea and Wassa to generate positive operating cash flows in 2006. In March 2006, we sold our shares in Moto Goldmines which resulted in net proceeds of $38.9 million.
We are currently negotiating with banks to set up a $30 million revolving line of credit that could be drawn on if needed.
COMPANY PROFILE
Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana and various property interests elsewhere in the country, as well as other gold exploration interests in West Africa and in the Guiana Shield of South America. Golden Star's production is expected to increase to approximately 300,000 ounces in 2006 and approximately 500,000 ounces in 2007, compared to production of about 201,000 ounces in 2005. Golden Star has approximately 207 million common shares outstanding as of March 29, 2006.
Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding the estimated commencement of commercial production for the Bogoso Sulfide Expansion Project, our 2006 and 2007 production estimates for the new Bogoso sulfide plant once completed, our 2006 and 2007 production and operating cash cost estimates, capital expenditure estimates and the availability of cash. Factors that could cause actual results to differ materially include timing of and unexpected events during construction, expansion and start-up; variations in ore grade, tonnes mined, crushed or milled; variations in relative amounts of refractory, non-refractory and transition ores; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms; technical, permitting, mining or processing issues, and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Form 10-K for 2005. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.
Non-GAAP Financial Measures: In this news release, we use the terms "total production cost per ounce," "total cash cost per ounce" and "cash operating cost per ounce." Total cash cost per ounce is equal to total production costs less depreciation, depletion, amortization and asset retirement obligation accretion divided by the number of ounces of gold sold during the period. Cash operating cost per ounce is equal to total cash costs less production royalties and production taxes, divided by the number of ounces of gold sold during the period. We use total cash cost per ounce and cash operating cost per ounce as key operating indicators. We monitor these measures monthly, comparing each month's values to prior period's values to detect trends that may indicate increases or decreases in operating efficiencies. These measures are also compared against budget to alert management to trends that may cause actual results to deviate from planned operational results. We provide these measures to our investors to allow them to also monitor operational efficiencies of our mines. We calculate these measures for both individual operating units and on a consolidated basis. Total cash cost per ounce and cash operating cost per ounce should be considered as Non-GAAP Financial Measures as defined in SEC Regulation S-K Item 10 and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. There are material limitations associated with the use of such non-GAAP measures. Since these measures do not incorporate revenues, changes in working capital and non-operating cash costs, they are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Changes in numerous factors including, but not limited to, mining rates, milling rates, gold grade, gold recovery, and the costs of labor, consumables and mine site general and administrative activities can cause these measures to increase or decrease. We believe that these measures are the same or similar to the measures of other gold mining companies, but may not be comparable to similarly titled measures in every instance.
Any other opinions?
Amarens
Some news and some insider buying.
uc.
Market Report -- In Play (GSS)
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GOLDEN STAR RESOURCES LTD(GSS) Quote, Chart, News
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Golden Star resources reports on the power situation in Ghana and impact on its operating and development activities Co provided the following update on the status of its operating activities in Ghana. There has been no change to the power situation in Ghana to that reported in the co's press release of August 29, 2006, and the wholesale power supplier in Ghana, the Volta River Authority, does not expect to make any announcements on the availability of power until after Sept 30, 2006. The co is currently curtailing its power consumption to conform to the power rationing requirements of the Volta River Authority. This has been achieved by operating the Wassa processing facility on reduced capacity (8,000 tonnes per day instead of 11,000 tonnes per day), curtailing services for the Prestea Underground mine, which has slowed the rate of exploration, and operating some of the co's standby diesel generating capacity. In August 2006, the co hosted a visit by the Regional Minister, review the degree and impact of illegal mining on the Bogoso/Prestea property. In particular, the co pointed out the impact that illegal mining was having on the Bondaye shaft, a subsidiary shaft currently used as a second means of egress to the Prestea Underground. In the short to medium term, the co plans to use the Bondaye shaft for limited scale, trial underground mining and therefore impressed upon the Regional Minister the urgent need for Government to stop illegal mining in the area to (i) ensure that the integrity of the shaft was not compromised by illegal mining activities, and (ii) to enable trial underground mining to commence.
A favorite long term gold stock, Pulled back.......
A 50% Fib retrace,This could explode to the upside.
Charts look very interesting.
Nothing like a little fear to scare up some cheaper shares >:D
Technicals
Most Actives
Percentage Gainer
Last Price Quote is:
-4.80%below 13-day MA
-7.11%below 50-day MA
RS Rating: 61
Fundamentals
Key Data:
Market Cap (M): $377.73
P/E Ratio: NA
PEG Ratio: 4.45
Next Earnings: 08/08/2007
Last Analyst Rating: Market Perform
Below...6 Month and 2 Year charts.......
Quote from: setravis on May 21, 2007, 07:33:01 AM
A favorite long term gold stock, Pulled back.......
It is amazing how a 1 year old comment still can be valid in this volatile market ;)
GSS is indeed an old favorite gold stock and a gold stock which very soon will turn a sharp corner and produce profits. In fact the forecast for PE in 2009 is 8.19 that seems pretty cheap.
I used the selloff in gold yesterday to buy some GSS (and ABX). Long-term I see the world going into an inflationary period and is therefore very bullish on gold.
It is a brutal sell off today but it seems like some of the money is floating into gold :)
Quote from: Michael on May 30, 2008, 09:08:06 AM
Quote from: setravis on May 21, 2007, 07:33:01 AM
A favorite long term gold stock, Pulled back.......
It is amazing how a 1 year old comment still can be valid in this volatile market ;)
GSS is indeed an old favorite gold stock and a gold stock which very soon will turn a sharp corner and produce profits. In fact the forecast for PE in 2009 is 8.19 that seems pretty cheap.
I used the selloff in gold yesterday to buy some GSS (and ABX). Long-term I see the world going into an inflationary period and is therefore very bullish on gold.
How do you say "I'm very happy to own GSS" in Maputo >:D. Suppose you are still in this one ;D
THX for suggesting it. I'm in.
Gold is complete in pullback.......
GSS selling at less than 10X 2009 estimates.
Completing a "Jenifer Lopez" rounded bottom :P ;D ;) and testing 200 day moving average.
Volume: 2,451,550
Avg Vol (3m): 2,974,050
Technicals
Most Actives
Stochastic - Bearish
Percentage Gainer
Last Price Quote is:
9.09%above 13-day MA
6.22%above 50-day MA
RS Rating: 29
Fundamentals
Key Data:
Market Cap (M): $377.73
P/E Ratio: NA
PEG Ratio: 1.64
Next Earnings: 08/05/2008
Last Analyst Rating: Hold
Quote from: jorgegr on June 26, 2008, 10:54:37 AM
How do you say "I'm very happy to own GSS" in Maputo >:D. Suppose you are still in this one ;D
THX for suggesting it. I'm in.
Well well well it seems we all celebrated a bit too early ::)
The 100 % increase in the electricity price in Ghana is not the news you would like to hear when you are invested in a Gold mining company in Ghana. GSS predicts that this new power rate will translate into an increase of $60 to $85 per ounce based on forecasted production. But the reaction in the market seems to be out of proportion with the actual impact of this increase.
First of all the price increase is in local currency. It might be hard to imagine there are currencies that are weaker than the Dollar (and I am not referring to the Zim Dollar here!) but the Ghanaian currency has lost 12.6% of its value against the USD during the last 3 month so the price of electricity measured in USD has fallen quite significantly and will most likely continue to fall in the future.
And then there is the other part of the equation – the gold price. The increase in electricity price caused a drop in GSS's stock price from 3.48 to 2.64. Last time GSS traded at 2.64 was in October 2006 at that time gold traded at around 600 compared to 930. That puts a 85 USD per ounce into perspective.
Now that doesn't stop some analysts to make gloomy predictions:
QuoteThe news forced Blackmont Capital analyst Richard Gray to downgrade Golden Star from "hold" to "sell." He cut his price target by $1 to $2.75.
"While the company believes these power costs should be closer to the $0.14/kWh level, we believe the decision to increase the costs is a significant blow to the company's ability to survive," the analyst said in a note.
He expects cash cost to rise above US$600 per ounce, causing margins to become "dangerously slim."
"the costs is a significant blow to the company's ability to survive" – hmmm that is a bit difficult to take serious. In the first quarter of 2007 GSS production cost per ounce were 535 USD and the gold price was 650 USD giving them a margin of 115 USD. Today their margin is 330 USD after the price increase. Assuming that Mr. Richard Gray had a neutral rating one year ago you can only wonder why he is afraid of the survival of the company after the margin has increased almost 300%.
Red Back Mining which is a Canadian Mining company that also has their main operation in Ghana had a much more relaxed reaction to the rate increased. The stock fell back with 2.27% and is up on the week.
It is against my principles to double down but I am really tempted to do just that when the market opens on Monday. I think 2.64 is an absolute steal for GSS.
Finaly the charts of GSS, Gold and Red Back. Make your own conclusions!
from IV board:
GSS Post Slaughter Analysis
I was certainly not expecting the type of reaction we saw in GSS for a $75 per ounce increase in costs from the Ghana power grid. The response in the stock was grossly disproportionate to what was said in the press release and was probably short selled the maximum to blow through stops causing panic. A 23% fall on a strong HUI gold day would only be justified if they told the market the Biox plant was shut down for a few months or serious operational problems existed at Wassa. You can readily see the gross over-reaction in these charts:
Short Term,
http://stockcharts.com/h-sc/ui?s=GSS&p=D&yr=0&mn=6&dy=0&id=p47150644858&a=114277439&listNum=3
Medium Term,
http://stockcharts.com/h-sc/ui?s=GSS&p=W&yr=2&mn=0&dy=0&id=p56507682201&a=129098525&listNum=3
Long Term,
http://stockcharts.com/h-sc/ui?s=GSS&p=M&yr=9&mn=0&dy=0&id=p06312542115&a=130584631&listNum=3
Irregardless of what I think is a gross over-reaction, GSS will likely fall further in the next couple of days to find a new bottom. The stock may not see $3 until there is some positive operational news from the Company. Hopefully, there are a number of institutional investors screaming for heads to roll and GSS managment will give the market a bone in terms of Q2 production. I do believe they will come out sometime within the next two weeks with some numbers.
I had invested in GSS back in 2003/2004 evenutally getting completely out in 2005 after management repeated failure of missing guidance. I re-recommended it February 2007 as I had thought their operational difficulties were behind them. Incremental improvement has been forthcoming but their poor communication skills with the market has continued to plague them. For instance, they could have come out with a PR well before the Q1 results were posted to tell the market of the Biox problem instead of just dropping the bombshell on the market in their Q1 earnings release.
Okay, what to do now and going forward? I continue to hold my core position so long as I believe they are genuinely working their business plan. Golden Star is going to continue to be a poor communicator to the market until some heads roll. Despite this fact and the devastating effect it can have on the market as illustrated yesterday, I continue to think GSS has a bright future. I have always believed that GSS will do well inspite of their management. Earnings and cash flow in the end, usually trump management miscues. Of course, this is qualified if managment is crooked. Stepping back a little, here's what I see as very powerful drivers for GSS stock to move up in the quarters to come.
1) Biox almost working at full capacity with recoveries improving. Recoveries are expected to continue to improve as they the ore moves from transitional to pure refractory (sulfide) ore.
2) The new road to Benso high grade ore is on schedule. What makes this a big plus going forward is that Wassa is a cash flow and earnings positive mine with gold grades in the 1.0 to 1.5 gram per ton range. Benso ore grades are much higher than this at over 3.5 grams/ton. Simply bringing in this ore and blending with the Wassa material will result in much higher gold production. Positive cash flow will begin to hit the bottom line at the end of Q3.
3) Enormously postive gold fundamentals and seasonal strength just around the corner. I think the Feds have lost a huge amout of credibility and will lose their grip on gold going forward. Since GSS is a high cost producer, each $100 move up in gold price is highly leveraged to earnings growth.
4) Market capitalization is several times lower than their peer group. Yes, they have had many management/guidance blunders in the past but this IMO does not justify the severe penalty the stock is trading relative to the price of gold and its peers.
Personally, I am going to treat any GSS stock price move under $2.50 as a gift from heaven and load the boat where I can. Unfortunately, the broken technical nature of the share price will likely not result in any strong upward movement in GSS until Q2 is reported. My feeling is if they report similar numbers to Q1, I will likely reduce my position to a tiny fraction of what it is now. This stock is a long term hold/work in progress. I figure it is going to take 2 - 3 positive, no excuses quarters in a row to finally flush out the large funds playing the stock from the short side and to convince investors things have changed.
Golden Star Reports Record Quarterly Gold Sales of 96,971 Ounces
On Wednesday May 6, 2009, 7:47 pm EDT
DENVER--(BUSINESS WIRE)--Golden Star Resources Ltd. (NYSE Amex: GSS) (TSX: GSC - News) (GSE: GSR) today announced its unaudited first quarter 2009 results which include record quarterly gold sales. All currency in this news release is expressed in U.S. dollars, unless otherwise noted. The Company will host a live webcast and conference call to discuss its quarterly results on Thursday, May 7, 2009 at 11:00 a.m. ET. To access the webcast and conference call, go to the home page of the Company's website, www.gsr.com.
Tom Mair, President and CEO, said, "Wassa turned in an excellent quarter producing over 56,000 ounces at a cash cost of less than $400 per ounce. This demonstrates the results of a full quarter of HBB high grade ore deliveries to the Wassa plant. At Bogoso we continue to see progress but power quality issues remain. We are on track to meet our 2009 guidance of 400,000 ounces at an average cash cost of $550 per ounce."
FIRST QUARTER 2009 RESULTS AND HIGHLIGHTS
•Record quarterly gold sales of 96,971 ounces for the first quarter of 2009, a 13% increase over fourth quarter 2008 and a 69% increase over the first quarter of 2008;
•Gold revenues for the quarter of $87.6 million representing an increase of 26% over fourth quarter 2008 revenues of $69.6 million and an increase of 65% over first quarter of 2008;
•Net loss of $1.1 million or $0.005 per share compared to a loss of $86.8 million for the fourth quarter of 2008;
•Operating cash flow of $11.1 million for the first quarter of 2009, or $0.047 per share;
•Operating cash flow before working capital charges of $19.8 million for the first quarter of 2009, or $0.847 per share;
•Quarter-end cash balance of $28.1 million; and
•Realized gold price for the first quarter averaged $904 per ounce compared to $808 in the fourth quarter of 2008, an increase of 12%;
GSS is the top performing gold mining stock today on kitco...
http://www.kitco.com/stocks/companyname_asc.html
GSS has one of the best charts of all gold miners.
Cup with Handle (Continuation) Pattern
Looking at the 1 year chart...
10-year gold trend...
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=48249)
Stocks Hitting High Notes...
When a stock hits a fresh high, it can mean that it's on its way to greatness -- or that it has run its course. Even with the risk of the latter, searching for these outperformers can reveal companies that are doing something right, much to their investors' delight.
52wk Range: 0.40 - 2.94
Volume: 7,392,208
Avg Vol (3m): 2,551,780
Technicals
Record Price High
Most Actives
Percentage Gainer
Last Price Quote is:
17.00%above 13-day MA
27.64%above 50-day MA
RS Rating: 83
Fundamentals
Key Data:
Market Cap (M): $377.73
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 11/10/2009
Last Analyst Rating: Hold
Gold Stock Strategist Newsletter Launched by Self Directed Investor, Inc.
Press Release
Source: Self Directed Investor, Inc.
On Wednesday September 2, 2009, 3:09 pm EDT
LOCUST VALLEY, N.Y., Sept. 2 /PRNewswire/ -- Self Directed Investor, Inc., a financial media company, today announced the launch of a new investment publication focusing on gold mining stocks, The Gold Stock Strategist edited by Scott Nystrom, Ph.D. The Gold Stock Strategist newsletter will be a monthly newsletter that provides subscribers with detailed comparative resource information and production forecasts. Recommendations based on best available information are also provided for subscribers.
Dr. Nystrom stated, "Gold is in the middle stages of a long-run bull market. The U.S. and other industrialized nations are in the throes of an unsustainable debt bubble. Historically, gold is the major beneficiary as government planners look to artificially boost demand with inflationary fiscal and monetary policies. The outcome of this script is predictable. The price of gold will trend higher and gold producing stocks will enjoy outsized returns."
Companies covered by the Gold Stock Strategist include Agnico-Eagle, Anglogold Ashanti, Barrick Gold Corp. (NYSE: ABX, Toronto: ABX.TO), Buenaventura, Eldorado Gold, Gold Fields Ltd, Goldcorp, Harmony Gold, IAMGOLD (NYSE: IAG, Toronto: IMG.TO), Kinross Gold, Lihir Gold (Nasdaq: LIHR, Toronto: LGG.TO), Newmont Mining (NYSE: NEM, Toronto: NMC.TO), Randgold, Yamana Gold, Allied Nevada (Amex: ANV, Toronto: ANV.TO), Aurizon, Capital Gold (OTC Bulletin Board: CGLD, Toronto: CGC.TO), Castle Gold, Gammon Gold, Gold-Ore Resources (Pink Sheets: GREXF, CDNX: GOZ.V), Golden Star Resources (Amex: GSS, Toronto: GSC.TO), Great Basin Gold, Hawthorne Gold (Pink Sheets: HWTHF, CDNX: HGC.V), Jaguar Mining, Metanor Resources (Pink Sheets: MEAOF, CDNX: MTO.V), Minefinders, New Gold (Amex: NGD, Toronto: NGD.TO), Northgate, NovaGold, Osisko Mines, Richmont Mines, San Gold (Pink Sheets: SGRCF, CDNX: SGR.V), Santa Fe Gold and others.
Visitors can receive a FREE primer on gold stock investing, "Gold Stocks 101: Understanding the World of Gold Mining Stocks and Why Now is the Time to Own Them. . .," which explains the economics of gold mining stock investing and analyzes drivers in gold prices. This FREE report can be accessed at http://www.selfdirectedinvestor.com/newsletters/.
About Self Directed Investor, Inc.
Self Directed Investor is a financial media company, using audio, video and featured articles to empower investors through ideas and education at: http://www.selfdirectedinvestor.com. The mission of the Self Directed Investor is to provide original analysis, commentary, and educational material to help inform personal investment strategies. Topics covered at SelfDirectedInvestor.com include: options trading, trading equities, FOREX trading, gold mining stocks, energy markets, ETFs, the economy, income and dividend investing. Dr. Nystrom, President and Editor of the Self Directed Investor, is also a Seeking Alpha certified columnist, a frequent contributor to Forbes, member of exclusive stock picking community, Value Forum, and a writer for Market News Video.
How about a...
Inverted Head and Shoulders bottom on the 3 year chart.
Hey,
Been in and out of this one for some time with good profits. Latest T/A looks great ;D.
Beware about this event:
DENVER, COLORADO--(Marketwire - 02/05/10) - Golden Star Resources Ltd. (TSX:GSC - News)(AMEX:GSS - News)(GSE: GSR) will release its fourth quarter and 2009 results after the market close on Wednesday, February 24, 2010 and has scheduled a conference call and webcast on Thursday, February 25 at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time). The conference call will allow analysts the opportunity to speak with the Company's management.
Very impressive watching the stock move Higher...with gold dropping.
52wk Range: 1.13 - 4.39
Volume: 6,539,291
Avg Vol (3m): 3,460,510
Market Cap: 948.54M
P/E (ttm): 53.19
EPS (ttm): 0.07
Div & Yield: N/A (N/A)
Technicals
Most Actives
Percentage Gainer
Last Price Quote is:
10.79%above 13-day MA
14.30%above 50-day MA
RS Rating: 28
Fundamentals
Earnings Expected on May 5
Key Data:
Market Cap (M): $377.73
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: 05/05/2010
Last Analyst Rating: Hold
1 year chart below...
GSS - Watch List
http://www.chartmoney.com/stockquotes.php?ticker=gss
Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the exploration and production of gold.
The Smart Money's Top 7 Gold Stock Picks
and one of these....
Golden Star Resources, Ltd. (GSS): Market cap of $1,301B. Institutional investors, who own 63.30% of the company, currently own 163,418,255 shares vs. 130,937,721 shares held 3 months ago (+24.81% change). Short float at 4.89%, which implies a short ratio of 3.57 days. The stock has gained 43.18% over the last year.
Technicals
Most Actives
Percentage Gainer
Last Price Quote is:
5.70%above 13-day MA
8.75%above 50-day MA
RS Rating: 90
GSS Norman Cay Development Signs Letter of Intent to Acquire... by Business Wire Jul 14 2011 8:00AM
STEVENSVILLE, Mich., Jul 14, 2011 (BUSINESS WIRE) -- Norman Cay Development, Inc. (otcqb:NCDL) is pleased to announce that it has signed a Letter of Intent to acquire all of the outstanding shares of Discovery Gold Ghana Limited, a gold exploration company incorporated and based in the Republic of Ghana (Ghana).
Discovery Gold Ghana Limited holds an exclusive option (pending final legal assignment) with rights to acquire, explore, and develop the Edum Banso gold project in the Western Region of Ghana. The 20.60 km(2) Edum Banso gold project is located in the prolific gold producing Ashanti Gold Belt, in close proximity and geologically similar to Golden Star Resources' (GSS) producing Hwini-Butre Father Brown/ Adoikrom open pit deposits. Extensive physical, geophysical, and geochemical exploration conducted on the Edum Banso concession to date, indicates a major gold anomaly approximately 8 km long and 600 m wide.
Ghana, formerly known as the Gold Coast, is Africa's second largest gold producing country, after only South Africa. Foreign mining investment in Ghana has benefited significantly from the country's stable democratic government system and well established mining laws.
Closing of the acquisition is subject to customary conditions, completion of due diligence, and the execution of a Definitive Acquisition Agreement. Additional information pertaining to this potential acquisition will be released as it becomes available.
Forward-Looking Statements
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by the use of words such as "anticipate", "believe", "expect", "may", "will", "would", "should", "plan", "projected", "intend", and similar expressions. Norman Cay Development, Inc. (the "Company") bases these forward-looking statements on current expectations and projections about future events, based on information currently available. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
SOURCE: Norman Cay Development, Inc.
For Norman Cay Development, Inc.:
LiveCall Investor Relations
Gerry Belanger, 855-490-9700 (Toll-free)
[email protected]
Gold and silver mining...Above the 50-day
Day's Range: 2.42 - 2.67
52wk Range: 1.78 - 6.01
Volume: 4,964,932
Avg Vol (3m): 3,682,940
Market Cap: 685.31M
P/E (ttm): 91.38
EPS (ttm): 0.03
Div & Yield: N/A (N/A)
Technicals
Most Actives
Percentage Gainer
Last Price Quote is:
10.17%above 13-day EMA
7.87%above 50-day EMA
RS Rating: 67
Golden Star Resources Shares Popped:
What You Need to Know...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes...just in case they're material to our investing thesis
What: Shares of Golden Star Resources (AMEX: GSS) are one of the few bright spots in the market today climbing 10%.
So what: Not only is gold climbing higher today, Golden Star announced yesterday that its Pampe Deposit was reopening. The deposit was mined from 2007 to 2008 and is expected to generate 75,000 tonnes of ore per month starting in January 2012.
Now what: The mine has 191,000 ounces of proven reserves and could be a boon for Golden Star if gold prices remain high. Shares are likely getting most of their boost from the 2.8% rise in gold today as investors worry about another recession. But gold is just too expensive for this Fool to get excited and jump into a leveraged gold play. I'll sit out this bump for now.