One rumor I heard is that a newsletter writer was responsible with a sell recommendation. The chart below shows the GQM share price for the past two years. If the massive sell-off today was due to a newsletter writer's recommendation and you are a subscriber, ask yourself if you really should follow his or her advice on small cap stocks with limited liquidity. You'll overpay to establish the position and you'll get crushed when the herd heads for the exit, which may explain the action today. This type of market action also shakes the confidence of other investors who are left wondering if there is something they are missing. The Golden Queen is looking rather tarnished!
Let this also be a lesson for the investors who repeatedly tell me that my clients should get more newsletter writers involved. Sure, the extra buying is great, but newsletter followers don't tend to be long-term investors and seeing them sell is not so much fun or, as GQM saw today, can be very destructive.