Why I am Buying Energold Today

by | Jun 26, 2019 | General | 0 comments

I bought Energold today. It seems like people are concerned about bankruptcy. I don’t think this is in the cards especially that now gold is becoming hot. Last week, the company halted the stock. I have no idea why and I can’t find out anything from the company. Today, they resumed trading with no news. So people are selling. The stock is down like 30 percent. Before the halt, the stock was trading for CAD $0.135. When the stock resumed trading today, the ask dropped to $0.095 but the bid went down to $0.01. I am not kidding. Then, people started building bids. I bought it because I think that nothing bad happened. They would not have resumed trading if there was bankruptcy on the table. It does not make any sense. So maybe there were some negotiating for something like selling an asset but they did not go anywhere so they resumed trading. Now people think bankruptcy. After they learn that nothing happened, the stock will resume 50 percent higher immediately. Anyway, these are my thoughts. Of course I might be wrong but I am willing to take this trade.

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About Mariusz Skonieczny

Mariusz Skonieczny is the founder of Classic Value Investors.