I have followed this stock for awhile and am asking someone who takes it serious ,not somebody short who wants to bring the price down.My question is why 6 downgrades in 2 days? what transpired to cause this? thank you
open up the options chain, and you'll have your answer. Anyone that views analyst ratings & targets as something other than tools of the game are certain to get their pockets picked on a regular basis.
Price. AEM has gone from a 6-month low of about $55 to a recent high of $88 a 60% increase.
A 100 share investment has gone from being worth $5,500 to $8,800. Time to re-balance by selling $3,300 of stock to get back to your original risk amount. Then if the remaining shares drop to $4,000, buy more to bring your investment back to $5,500. An ever increasing trailing stop is the best way to do this.
Average price target is $84.50, so it hit that target and then some. At that point a stock likely has more downside than upside. I'm not saying it will go down for sure but it is a lot more probable at $88 than at say $60.
Also, many investors have booked their losses for the year and may need to book some profits to offset. Many people may be doing this in other gold related stocks and ETFs.