European Gold Share Discussion Threads

[bluelynx] 26/7/2008 22:34

Chris

Thanks for the link the article is very reassuring.

[chipperfrd] 26/7/2008 13:53

Worth a read:

[bluelynx] 25/7/2008 19:11

Chipp

Thanks for that, I may be tempted to buy some more EGU soon if the price falls some more. But I'll only buy small amounts at a time because I can't yet see a bottom to this fall in miners.

MoneyWeek magazine this week advised selling miners because they see demand from China dropping off for the next couple of years. But I would hope Gold miners like EGU and CEY will hold up well due to the fact that the price of gold will hopefully increase due to the falling dollar and banking troubles. Also the big miners will hopefully be measuring up the likes of EGU and CEY for take overs.

[chesney hawks] 25/7/2008 19:06

16/7

LONDON (Thomson Financial) - European Goldfields Ltd. said it knows no
reason for the recent fall in its share price, adding it continues to make
substantial progress on all its assets.

[simonbroughton] 25/7/2008 19:04

chipperfrd,

You might be interested that the price to book value (as quoted on TSX Money) is 0.92 IE the book value per share is now greater than the price per share!

I have never held these and the only reason I have not bought yet is concern that there may be something badly wrong which we don't know about. The TSX has got a very bad reputation, in my eyes at least, for insider dealing and shorting causing very unwelcome volatility.

Whatever it may be EGU must soon attract the attention of a bidder at this price.

[chipperfrd] 25/7/2008 12:05

ch - no!

I include all the other factors into my earnings models which are much more specific.

[chesney hawks] 25/7/2008 11:33

Chip do you include cash balances in your calcs?

[chipperfrd] 25/7/2008 11:28

Stuart,

I have just been doing a variation of the MC/res oz valuation check.

Working out the gold equivalent oz represented by all the metal resources declared by companies I am interested in, then calculating the fraction of an oz represented by each share. I then just compute the number of oz that can be purchased by buying £1,000 worth of each company.

Bit of a rough metric really, because obviously there are many company-specific factors that increase/decrease the relative value of in-ground resources. But it was just meant to be a bit of 'fun' to do whilst this awful market tore great holes in the mining sector.

The '82' has already changed to '91' because of today's drop and compares favourably with a number of mainly gold-only producers/developers.

Chip

[stuart14] 25/7/2008 10:33

Is that good or bad Chipperfrf (the 82 I mean)?

[chipperfrd] 25/7/2008 10:21

Blue Lynx,

(re our conversation on the other thread)

You were quite correct about the resource number.

I get the following for gold eq oz's:

Gold = 10.94m
Silver = 1.54m
Lead = 1.57m
Zinc = 1.97m
Copper = 8.9m

Hence total of 24.9m eq oz - equates to 82 on my comparison scale (FWIW)!

Chip

[tonudiki] 25/7/2008 08:54

The carnage continues!!

[malkie] 18/7/2008 12:15

loads of commentry & discussion re naked short selling of juniors on the Canadian markets on:



Mine Finders was suggested as a likely target last weekend (12th July)..

[maximoney1] 18/7/2008 11:35

Hmmm, i guess if it dont 'close' at 178p or above by end of play then a potential reversal point looks less likely. Still looking for a recovery at this point tho' or a news item to explain the fall.

[maximoney1] 18/7/2008 00:16

Using closing price data, we might actually be at a key reversal point???

Have been watching this for sometime, but cannot free up funds to purchase. :-(

[frizzers] 17/7/2008 23:23

I bought this for $3 in Oct 06, when gold was below 600, have ridden it all the way up and now back down. IMO it is either being or a fundraising is coming. The chart is not behaving right. Perhaps insiders are selling.

[nicksu] 17/7/2008 22:02

I am new to holding these stocks, and despite seeing a very quick loss in my holding still think the story is intact. This is a similar pattern to the one Mine finders took a few weeks ago. Looking at the RSI these stocks are now in oversold territory.

If they fall more I am going to purchase more. Any one holding Junior mining stocks must now wait on gold to move above $1000 dollars. Then hopefully this will act as a catalyst for the whole sector to move up. It seems that European Goldfields with companies like Mine Finders are uniquely placed to benefit from the forthcoming rise in gold/silver. Their valuations are now so cheap in comparison to the number of ounces in the ground that at someone point the price must turn up either that or someone will buy them in which case the price will go up.

The following may shed some light on recent price action.

[wassapper] 17/7/2008 08:10

They say they know of no reason which is good from an operational perspective. However, the fall is due to wider market falls, gold companies performing badly even with high gold prices, and EGUs recent disappointing results.

EGU needs a turnround in at least two of the above to sustain an upward move.

[chesney hawks] 17/7/2008 07:56

Anyone else there?

'LONDON (Thomson Financial) - European Goldfields Ltd. said it knows no
reason for the recent fall in its share price, adding it continues to make
substantial progress on all its assets.'

Nice bounce in Canada last night.

[chesney hawks] 16/7/2008 07:54

down again on no news.

[chesney hawks] 11/7/2008 16:01

gold up tp 960+,hui up 5% and we're down 4%. FFS.

[haydock] 07/7/2008 09:47

Borrowed from CDN re shorting:
KENWAY - 6 Jul'08 - 08:36 - 10397 of 10441


Copied from another bb - any thoughts on the the proposed solution of putting in a high sell limit?


"Prevent a Shorting Attack Sunjammer

Just grabbed the undernoted from the DES BB courtesy of Dorset64 (I hope he does not mind). There is a feeling over there and with RKH that we've been the subject of a concerted Shorting campaign. Read the undernoted and place your high Limit Orders, it may well help stop this share being similarly devastated in the future.
--------------------------------------------------------------------

Guys, just looking here to see where this will land and as to whether the prospects are good to buy in at that level.

On reading your posts it appears obvious that some of you believe that the share has been attacked by a shorting campaign. This is not nice and I too have held/still hold shares that have been attacked.

The only concerted way for a pi to alleviate this problem, at least to some extent is to talk to your broker. On shares that are traded on SETTS, not sure if this is can someone confirm, all you need to do is the following to stop your own shares from being used in the shorting campaign.

In simple terms the way they can easily short a setts share is to place shares for sale on the bid, say 5p or 10p below the current bid. The setts programme will try and match this trade and thus lower the bid towards this level. As soon as it gets close they will either take the trade or pull it out and again place them a few pennies lower again thus keep on bringing the bid price down.

Now what can the average pi do to stop their own shares being shorted, as believe me your own broker, if approached, WILL sell your own shares that they hold on your behalf as a nominee account.

There is two things you can do, 1st is to certificate them but this is not obviously to everyones advantage but the 2nd option is simple. All you do is to phone your broker and put an order in saying that you wish to place your shares for sale at, for arguments sake, double the todays price. As they are 'on order' they cannot be lent out by your broker and in turn you are reducing the amount of 'free shares' out there that can be used for shorting purposes.

Although an individual pi will not normally have enough shares to halt a concerted shorting attack, if a large number of holders did this it would reduce the overall amount of shares that they could get their hands on.

In my opinion well worth doing if not only for the knowledge that your own shares cannot and will not be used in a short attack against the very share that you own.

Dorset"

[bluelynx] 26/6/2008 09:51

Further to the Naked Shorting discussion, If you go back to the interview page with Jim Paplava and Patrick M Byrne:



and left click on the link saying:

Dark Side of the Looking Glass: The Corruption of Our Capital Markets.

You will be shown a slide show, which explains, in very clear terms, exactly how naked shorting is carried out and how in it is very damaging to investors and businesses while being extremely profitable to the criminal brokers.

[bluelynx] 25/6/2008 10:58

More from Jim Sinclair on naked shorting, and an interesting interview on the subject from Financial Sense Radio. I can't believe Jim Sinclair and Jim Puplava are making something out of nothing, I'd trust them more than the bosses of the major banks and politicians any day.

On: Tuesday, June 24, 2008, 9:35:00 PM EST

The Crime Of The Century

Author: Jim Sinclair










Dear Friends,

This is the Jim Puplava's webcast presentation titled "The Crime of the Century." Please click the link below to download the presentation in MP3 format.

(Approximately 17.7mb)

You know that I do not read other blog sites so if I go off the mark you will have only one person to blame - me. Here is an exception, thanks to the CIGAs that demanded I listen. It was good advice.

I suggest you make the time to do the same.

Chart painting is a major tool being used now against you. I am not suggesting TA be ignored. I am, as always, suggesting that if you know the plot, you will know when you have to weigh in on the fundamentals to balance your thinking.

Many juniors are worth more dead than alive. That means you could market the pieces for more than the cap value.

The shorts seem to now be driven more by ego and power trips than brains. Brains would give them the ability to know when enough is enough, if only from a functional profit standpoint.

If a junior is shorted in a situation where it would take 3 months to cover at 50% of the legal short on an average daily volume and that company could be sold in pieces for more than the quoted value, TA might be rendered less important in the equation with fundamentals becoming more significant.

The short depends on your FEAR of the UNKOWN. Call your company and be in the know. If you prefer, try Mike Martin at 1-800-426-3987. He worked for me for years as a metals equity analyst. I have great respect for the depth of his knowledge.

Unlike a manufacturing company you can only put a junior on hold, you cannot break one. The reason is that they have no debt. All you can accomplish is make them sit on an appreciating asset which might actually be to doing them a great favor.

The game has now exceeded the parameters of reason as the shorts seem to be power tripping, having lost their grip by ignoring common commercial sense. Don't lose your grip by letting them paint a TA condition at a level at which TA is only a modest part of the total equation. I am assuming you are all not on margin.

Respectfully yours,
Jim

[bluelynx] 24/6/2008 17:27

More detail about Naked Short selling via an radio Interview with Jim Puplava and guest Patrick M Byrne from a past programme of The Financial Sense News Hour from March 2007, interesting indeed.



Could EGU be subject to naked shorting.