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goldminingXpert (29.69)

Great Panther Shares Likely To Continue Limping Lower

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August 16, 2011 – Comments (12) | RELATED TICKERS: GPL

By Ian Bezek

Great Panther Silver (GPL) has returned incredible results to shareholders over the past two years. From a low of 14 cents during the great financial crisis to more than $5/share earlier this year, Great Panther has clearly been on a roll. From last October alone, shares quintupled, rising from under a dollar to their peak at $5.04. However, observers are starting to wonder if Great Panther has become a pump and dump operation that will leave investors preyed upon. The stock has fallen 40% in recent weeks, forcing us to ask whether the company's bullish story is still in tact.

There are often predictable phases within a typical Canadian junior miner's maturation period. A company will, seeking to draw attention to its unrealized prospects, hire some sort of Investor Relations team or PR firm to promote its stock. The company will then release good news such as positive drilling results, first ore production, a first-ever cash flow positive quarter, or other news of that nature. The stock will reach a great height and insiders will cash out, often moving their energy and attention to another junior mining firm. Then the stock will sell off as the hype dies down and the company transitions to being a more mature business with predictable operations.

Continues here 

12 Comments – Post Your Own

#1) On August 16, 2011 at 10:39 AM, SN3165 (< 20) wrote:

Until... Q3 earnings.

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#2) On August 16, 2011 at 11:42 AM, Jbay76 (< 20) wrote:

I will say it was interesting to read, but I beleive their Q3 report will prove that author wrong.....

disclaimer: long GPL

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#3) On August 16, 2011 at 8:42 PM, Euro247 (65.92) wrote:

I would be very surprised (and disappointed) if it dips below $2.50 ...although some would love the opportunity to buy some at that price..we'll see..

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#4) On August 16, 2011 at 9:10 PM, goldminingXpert (29.69) wrote:

There is a lot of technical support at $2.50 so that is a reasonable place to guess a dip might stop. A lot will depend on what happens with spot silver prices and the risk tolerance level people are up to in coming weeks. If the stock market dumps again, $2.50 probably goes down fairly easily. If we are back in bullish mode, support could easily hold. 

I would like to load up some positions in other silver miners, so I would like a sectorwide dip, though I have no preference as to what GPL does as I have no interest in buying or shorting it. 

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#5) On August 16, 2011 at 9:51 PM, NOTvuffett (< 20) wrote:

Maybe this stock has gotten ahead of itself, but that is the nature of this game.  Can you tell me that Bernanke won't  inflate our dollars?  And you know they don't index for inflation for capital gains.

The Seekin Alpha report only has one pertinent detail in it, that insiders were selling.  

Well, duh, they have spent years on the project and they want to get paid. 

Silver is an interesting metal because it is a PM and also an idustrial metal which is consumed. Just about half and half although  industry is slighty greater.

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#6) On August 16, 2011 at 9:53 PM, NOTvuffett (< 20) wrote:

for the sake of disclosure, i have a relatively small long position in gpl

 

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#7) On August 17, 2011 at 5:47 PM, Frankydontfailme (26.42) wrote:

http://www.fool.com/investing/general/2011/08/17/exclusive-setting-the-record-straight-on-great-pan.aspx?source=ihpsitota0000001&lidx=6

I have not so small long position in gpl 

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#8) On August 17, 2011 at 10:36 PM, XMFSinchiruna (27.52) wrote:

http://www.fool.com/investing/general/2011/08/17/exclusive-setting-the-record-straight-on-great-pan.aspx

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#9) On August 18, 2011 at 11:37 AM, tradeRR (< 20) wrote:

interesting how the article was taken off of seekingalpha

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#10) On August 18, 2011 at 2:55 PM, XMFSinchiruna (27.52) wrote:

sure nuff is ....

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#11) On August 18, 2011 at 4:29 PM, XMFSinchiruna (27.52) wrote:

Here's Part 2:

http://www.fool.com/investing/general/2011/08/17/exclusive-setting-the-record-straight-on-great-pan.aspx

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#12) On August 19, 2011 at 6:19 AM, goldminingXpert (29.69) wrote:

I have retracted this article. Disregard the original posting.

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