What is happening with CSG is that there is only limited buying and much more liquidation. Liquidation caused by several factors; Cash calls, Loss of hope in the stock market, Short term cash needs. Market makers are obviously not supporting CSG. Rest assured market makers are not supporting any micro cap resource stocks currently. I do not know of even one resource stock that has escaped this “phenomenon”. Literally, the baby is being thrown out with the bathwater.
There will come a day when the excess becomes apparent and selling abates. Who knows when this will take place or when the selling dries up. Maybe it’ll take one week or one month or even one year. We will get rallies and we will get additional panic selling waves due to severe liquidation and a general lack of confidence. Certainly the US presidential race favoring an Obama victory is a strong factor in much of the selling. If Obama goes on to actually win this thing maybe the anticipation is over and the markets finally bottom.
The one thing we are all counting on is the long term results of CSG. I am sure that CSG will control their internals and if Gold holds up over the long term I am still convinced that in two to three years CSG will earn between $.50 to $.99 per share, and that means the stock will be so far ahead of where it is now, that we all will laugh at what is happening today. The only force that can vary beyond our control is the price of Gold, but I am a great believer in supply and demand over longer periods. Therefore, we cannot worry about the immediate price of CSG, no matter how low it may go, if we want to retain our sanity. CSG is definitely a long term hold, and I wish you all lots of luck in holding on . Do not despair.
PS: Continue to put stink bids in. I am, and I hope to get filled. I believe that we are at, or near the bottom of this selloff in CSG.
