buyers building, page-7

Newmont and Newcrest have both been linked in the past as having interest in taking over Lihir, many many years ago this has been reported and nothing happened, most likely nothing will change this time around IMO. The takeover talk has been going on for so long now I would find it hard to believe, but always holding LGL a strong believer in gold in general so a good stock to hold, been holding some LGL now for over 1 1/2 years as well as consistently trading.

Lihir has been hit reasonably hard over the past couple months, what I see for the improving share price lately is:

- Price of gold is stabilizing and some big traders lately are calling higher highs for gold in the future,
- Finally a solution to the Ballarat gold mine, which frees up money and has been a nagging problem for over a year now,
- Improving cash flow and operational profits, including a profit upgrade and higher sales,
- Improving market conditions, Dow Jones is up and the short positions have to re-buy eventually.

I've noticed LGL is commonly targeted for shorting and when the market eventually heads higher, it also tends to outperform other stocks. In contrast when the market has little direction, LGL is commonly shorted, been happening for years now, nothing unusual. It always over-shoots in both directions so expect anything IMO. $3.30 should be major resistance now that $3.00 has held.