I was very enthused about this stock when I toured the company’s sites in Nevada earlier this summer, but RPMGF got cut in a half when a lawsuit they’d brought against Coeur d’Alene settled less favorably than some investors might have hoped. The verdict was worth $40 million to Rye Patch — not exactly chump change — and it now looks as though at least a few investors are reconsidering the company’s merits. The stock is very likely being accumulated — at one-fourth of the 0.80 it cost to buy a share at late 2011’s high of 80 cents (see chart inset) — and you should probably do so yourself if you’re looking for a well-managed, well-capitalized company that is highly leveraged to the price of bullion. I’ve sketched out a hypothetical pattern that could provide an excellent entry point, but you should be alert to the possibility that the stock could take off without pulling back as far as I’ve indicated.
