The HUI is really volatile and mostly to the downside today. The value of precious metal stock is way out of whack with the underlining metal prices to the highest degree and highest standard deviation I can recall. Thsi can't continue so either metals prices fall substantially or stock prices rise substantially. I still think it is the stocks that will rise so I did buy more ECU today as I did the last 2 days when bids were hit. I'm not chasing the purchases but letting the sellers hit me, it seems many others are doing the same, not chasing but letting their bids get hit.
ECU has a catalyst coming with 2 drills turning and production continuing to improve and generate greater cashflow. It's also true that the company is spending what it makes to make those 2 drills turn, do scoping study, improve mine operations, make property payments which will end in Nov 2011, and buy equipment required to increase production. They are working on many fronts and the market will get it eventually and no one can be sure when that will be anymore than anyone has been able to predict the precise timing of HUI stocks to get properly valued.
I still think stocks will rise to meet metal valution discrepancy but still don't know when. I am surprised it hasn't already started to happen.
