Gold Reserve, Inc. (AMEX:GRZ)

They don't currently own any reserves. I think a more appropriate company name would be Gold On Layaway.

Likely to win in ICSID court.

Gold Reserves, Inc is about as NUTS as you can possibly get for an equity trading an average of 50,000 shares per day. I avoided downthumbing it while it rose with the gold prices. The last few days are either a dent in the armour or some reconsolidation of fresh future bagholders. I understand that valuing precious metals still in the ground is subjective. I question junior non-producer miners share price rising with Gold prices which are a temporary snapshot in time that may not correlate to getting the stuff from the ground, (if ever).

In the case of Gold Reserves, however, it's even more ludicrious....Gold Reserves would imply that you have some. Gold Reserves doesn't even OWN A MINE or a claim!!! ???? Huhhh?? They do have over $65 Million in the bank which might warrant some share price, but they are using it to try to get their mine back from a government entity that is unlikely to be moved. Huhhh?? They also owe over $100 Million so are net negative!

10-Q's are excellent reading on company's such as this....try this snippet and the full report and see if this company is worth even cash on the books.....

http://biz.yahoo.com/e/110812/grz10-q.html
"Gold Reserve, an exploration stage company, is engaged in the business of acquiring, exploring and developing mining projects. From 1992 to 2008 we focused substantially all of our management and financial resources on the development of the Brisas gold and copper project located in the Kilometer 88 mining district of the State of Bolivar in south-eastern Venezuela (which we refer to as the "Brisas Project" or "Brisas").

On October 26, 2009, in apparent response to our filing on October 21, 2009 of a Request for Arbitration under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes ("ICSID") against the Bolivarian Republic of Venezuela ("Venezuela"), government personnel arrived at the project site, claimed ownership of the Brisas Alluvial Concession, seized assets, expelled our personnel, and took physical possession of the property. Subsequently, on November 4, 2009, Venezuela notified us through the issuance of an Administrative Act, dated October 20, 2009, of its intent to cancel our underlying hard rock concession which it formally completed in June 2010. "

Whoever buys a stock like this is a speculator. This is probably one of the most overvalued stocks I've seen in a very long time.

The company has hardly a million in revenues and is losing tens of millions in free cash flow. Yet, for some odd reason it has a market cap of over 170 million. You don't need to be Warren Buffett to know this is a ridiculous valuation.

I think most people bought this stock just because it has the word "Gold" in it. Gold has been doing good in recent years so they think that this stock will do good as well. This is very stupid strategy!

It’s pretty obvious that gold is a bubble and like all bubbles, if they get big enough, they pop. Also, gold has zero intrinsic value. This means you have to hope that there is a greater fool to buy it off of you for a price greater than what you paid for it.

In the long run I am willing to bet my life on it that the gold bubble will pop and trash companies like this will cease to exist.

gold

Has anyone noticed this $1.928 billion claim??...said a fool. HUH?

mining stocks right now even the pathetic ones are doing well.

Gold is going to continue going up as inflation occurrs. Aslo has anyone noticed this lawsuit?? It's for almost $2 billion!! Even if they settle for 15% of what they are asking for that is $300 million dollars (a.k.a 300% greater than current market cap!) This is not a hard decision.

Has anyone noticed this $1.928 billion claim?? I'm definitely buying some because of the potential upside.

This stock is going no where but up!

As the arbitration continues between GRZ and the Venezuelan government, more likely than not, there will be a settlement significantly less than the initial 1.928 billion dollar claim by the company. The Venezuelan government has a history of settling when being sued in similar situations (all of the rulings of the international court are available on the international court website). While the settlement will most likely be significantly less than the initial claim, it will still be much higher than the current market cap of about 94 million. While I would not buy this stock from a fundamentalist point of view, it's prospects as a catalyst event driven stock look quite enticing.

When things turn around it will be a result of the governments around the world having pumped money of all kinds into the system. This will cause a surge in inflation as economies start to tick up. That's why I've been and continue to be bullish on precious metals and the miners of said metals. Really, anything that is sensitive to inflation is a good place to be.

The armageddon nuts and gold bugs always think that gold is the place to be, but in this case that does not mean they are wrong.

You can blame TMFBreakerDave for me adding pitches to so many of my picks.

Gold is on everyone's mind or it should be, it is in most everything we buy and it is driving up a lot of the prices that we are complaining about everyday. Think of your cell phone, computer, car/truck/minivan, TV, microwave oven gold is in everyone one of them and it cost a lot to make them and to recycle them to get the gold back out of them that if people do recycle them. So think of Gold!!!

I recently sold this one at a 65% loss, but learn't a valuable lesson. Dont buy anything that isn't at least close, to starting production. The longer the waiting time, the more can go wrong... like the government rescinding your permit on (likely) bogus environmental grounds (read: Not bribing the right people).

I wish them good luck in their legal action with the Venezuelan government, but expect their share price to steadilly dwindle away untill the issue is resolved.

That said, I still think it is a well run company sitting on a huge pile of gold, and if GRZ get the permit back, i'll likely jump back on board...AFTER they start hauling the gold out.

a gamble

Grz owns their concessions in Venezuela. Current assets is greater than current capitalization. Gold will go up. Locals want this mine to open. We've been here before. Chavez always pays for what he takes. Minining is allowed in the Imataca by Presdential Decree (Chavez in 2004 I believe).

can't go wrong with hot mining material especially gold

gold play

Now that the Chinese stock market is in tune again with other bourses of the world and is going down, oil and gold will not be able to move any higher.