Catching a Golden Knife in Orezone Resources (OZN)

The Microcap Speculator submits: What kind of idiot buys a junior mining stock trading near its 52-wk. low on a day that gold futures crashed almost $50? Hard to justify but that's exactly what I did today, buying several thousand shares of Orezone Resources (OZN) at $1.25.

Only a few weeks ago, Orezone shares were bouncing on news of test results from a mine in West Africa. Those days are long past. Now its almost $.50 lower.

Gold could continue to plummet, in which case I expect I will get out of OZN with a .07-.15 loss. However, if gold recovers at all, or even pauses, I expect that Orezone will reward me with a quick, sharp gain. I'm a renter not a buyer on this one.

OZN 1-yr Chart

DISCLOSURE: I am long OZN. Not a recommendation to buy or sell any security. For informational and educational purposes only.