The overall tone of the stock market is quite negative and it may be this way for awhile. Some anaylist think that the Dow will have to move to 10000 before the market starts an upward trend again.

The junior miners share price does not reflect the price of GOLD. One reason for this is the tighting of credit by banks, thus making harder for junior miners to get funding to proceed forward.

There has been massive amounts of specs investors in KRY. When the first wave of selling began it feed on itself as margin calls went out to investors. Then to compound this in November and December investors further sold for tax losses. finally, as we started to gain share price in January we were hit by the share dilution, and hence here we are now.

Here we are now. Actually, management had a great deal of foresight in offering shares for further funding. Although, they do this too frequently. At least they waited till after the tax loss selling was completed and the stock had some upward momentum. Two they did not go to banks for funding. Which they may not of received, and where they would be paying variable interest for that money. Overall, it shows that big players still like KRY to some extent.

As for the negative market sentiment. Hard to tell what further impact this may have on KRY, and easy guess is it drives us further down without the permit. However, at this point we have taken most of our lumps, so I don't expect a major sell off.

Finally with the way the market is if KRY gets the permit we may see some real action. With everything going down investors just may flock to KRY to help them recoup loss in other areas. I realize this may be a long shot, but who knows.