Investors punished China 3C Group (OTC:CHCG-OLD) after its quarterly earnings announcement. I didn’t think it was that bad but if the stock continues to trade down I will exit this position.
What’s going on with gold shares? All kinds of miners including Western Goldfields
(WGDFF.OB), US Gold (NYSE:UXG), Crystallex (KRY), and Agnico-Eagle (NYSE:AEM) are off almost 10% today, yet gold futures were only off slightly. We’ll find out soon whether it was a fund liquidation or, as James Sinclair has posited, OTC derivatives blowing up. I have cut my gold exposure considerably but still own some Goldenstar Resources (NYSEMKT:GSS), a little Crystallex, and a few other small positions.
As expected, Accredited Home Lenders (LEND) sued to enforce their buyout contract. However, Lone Star pushed back the deadline for the tender until August 28, which indicates they are likely to try to renegotiate on price. I am told that LEND has a strong argument in the pending litigation.
DISCLOSURE: Long GSS, KRY, CHCG.OB.
CHCG.OB / GSS / KRY 1-year chart