Golden Star Resources Popped: What You Need to Know
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 gold miner Golden Star Resources (ASE: GSS) have been on quite a ride today, starting off more than 5% below yesterday's closing price but riding up to an 11.8% gain this afternoon. All of this was done on surprisingly average trading volumes.
So what: Of course, the big volume came yesterday as Golden Star plunged on a disappointing second quarter. This thinly traded claw back looks like a reaction to higher gold prices in the wake of recent market volatility.
Now what: Golden Star is gaining more on this precious-metal spike than leading producers such as Barrick Gold (NYS: ABX) or IAMGOLD (NYS: IAG) , jumping about twice as high as those larger rivals. The only other gold producer that comes close to Golden Star's performance today is Canadian peer Aurizon Mines (ASE: AZK) -- and that was because the company found some fresh, exploitable goldfields outside Quebec. Golden Star's big jump could mean that investors already forgot about yesterday's sins because of today's good news. But the whole gold sector is up today while the overall market suffers.
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.
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