We hope you are having a great day. If you haven't watched GOFF's market action today, we will explain to you what is going on because we feel it is very important that our premium members understand the full extent of today's trading so far....
In our opinion, there are several market makers that are shorting GOFF in an attempt to bring the price much lower. Despite their efforts, the support level in the mid 40 cents to 41 cents seem to have stopped them from shorting GOFF. As a matter of fact, we even saw a bid for 2 million shares at 41 cents leading us to believe that certain investors are looking to accumulate large amount of shares in GOFF.
As you can see from the intra-day chart, GOFF quickly bounced from a low of 40.5 cents to 42.5 cents within minutes of shorts finding out that the stock wouldn't go lower.
Millions of shares were purchased by smart investors that were looking to get into the dip. At the same time, millions of naked shares were also sold in the market by short sellers.
It is our opinion that those shorted shares will have to be bought back in the near term at much higher levels and could send GOFF to over $2.
If you are still skeptical about the potential of a short squeeze just take a look at recent small-cap companies that saw their share price quadruple or even quintuple in the past few months:
ECAU from 60 cents to over $3.20.
GNIN from 70 cents to $3.00.
SWVI from 17 cents to $1.00
Like the above, GOFF is setting up perfectly as not only a small-cap gold play with huge potential but also as a short squeeze play that has just started moving higher.
Strong News Ahead
We have a feeling that GOFF could soon start unveiling major news on the La Frontera property, we find it interesting that the Company mentioned the Marmato property (which is close by the La Frontera) in yesterday's PR. From the CEO:
"We are convinced that Colombia is the right place and that our project is very timely. Just look at the other projects in Colombia and their success -- such as at Marmato in our district. They continue to attract solid investment. "
After further due dilligence, we found out that the Marmato property which is owned by Gran Colombia Gold has the following attributes:
In June 2012, the company announced a National Instrument 43-101 compliant Measured and Indicated resource of 11.8 million ounces of gold and 2.6 million ounces of gold in inferred resources with a 0.3 g/t Au cut-off grade based on 216,000 metres of drilling.
This would be equivalent to over 10 billion dollar in potential gold for Gran Colombia (at today's $1,607 per ounce of gold). Should Gran Colombia discover that amount of gold, the company' stock would skyrocket.
This clearly shows that gold is very real in Colombia and in great quantity. At its height, Grand Colombia Gold traded over $2.20.
Pretty soon GOFF could release a report confirming the value of its property and the potential of it. When that happens, share in GOFF could quickly rise to new highs.
Get ready for more upside fellow premium members, we think GOFF has a ton more to offer in the coming weeks, $2 per share could soon be a reality in our opinion.