KRY shares are in a fast market, going up with a bullet; I'll keep up to speed with this. Gold shares have also lifted nicely today – far outstripping gains in the Nasdaq.
Apparently a Reuters article (as follows) set off the buying in KRY. Venezuelan Ministers have toned down the rhetoric. Business in Venezuela will proceed in a businesslike way.
(Reuters) Venezuela limits takeovers to telecom, power cos - January 11, 2007 11:42AM ET CARACAS, Jan 11 (Reuters) - Venezuela has no plans "for now" to extend its new nationalization drive beyond the power and telecommunications sectors, the said on Thursday, ruling out imminent moves in the mining sector. His remarks should partly ease investor fears over companies such as Ternium-Sidor , Venezuela's largest steelmaker, after President Hugo Chavez this week announced new nationalization plans, but left unclear whether sectors such as mining would be included. Asked if the nationalization push would also include the likes of Sidor, Economy Minister Rodrigo Cabezas said in a state television interview: "For now, the aspects we have decided on are the telecommunications and electricity sectors." Chavez, who for years has gradually expanded state control over the hydrocarbons sector in the OPEC member nation, opened new fronts on Monday against private property, saying he would take over top power and telecommunications companies. He has also extended his offensive this week against hydrocarbons firms by saying he wants the state to take over gas projects that involve private companies. But the president also referred more generally to reversing privatizations and protecting strategic interests, firing press speculation that he is also looking to take over airlines, steelmakers, sugar firms and cement-makers. Asked why Sidor was not included in the government plans, the economy minister said that the state already has a large stake in the company. Sidor workers own 20 percent of the firm while the Venezuelan state owns another 20 percent. The remainder is controlled by Ternium, Latin America's largest steelmaker, with an annual production capacity of 11.6 million tonnes. Another miner, Canada's Crystallex International Corp. , has been buffeted in the turmoil following Chavez's announcement. Although its business in Venezuela is in the early stages as it seeks to exploit a gold field, the company's stock price dropped sharply earlier this week because of Chavez's remarks. The stock price has fluctuated wildly amid hopes and fears the company will receive a permit to start work at the Las Cristinas gold project after years of waiting.
You do not want to be short KRY. The kitchen sink has been thrown against this company, and yet they hold a Mine Operating Agreement for a world-class gold property. Unhedged shorts will likely lose their shirts. Volume on the uptick was close to 5 million shares in about an hour.