Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of South African gold producer Great Basin Gold
So what: I couldn't find any company-specific news driving the rally, but given how badly Great Basin has been clobbered over the past month, a big technical jump isn't surprising. Also, when you consider its relatively high short ratio of 9.6, today's gain in gold prices could be triggering a "squeezing" effect in Great Basin.
Now what: Less risk-averse investors might still find the shares interesting. After a hot second-half of 2010 -- in which the shares rose 75% on optimism regarding its transition from a development company to a producer -- Great Basin has slumped considerably in 2011 (down about 30% year-to-date). The story at its Hollister mine remains an exciting one, however, and if Great Basin continues to hit its production forecasts, today's pop might just be a drop in the bucket.
Interested in more info on Great Basin? Add it to your watchlist.
