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Coeur Mining, Inc. Message Board

  • investora2z investora2z Jun 7, 2013 9:07 AM Flag

    Slightly better now

    Gold and silver are showing some signs of stability. Time will tell whether it is the calm before the storm or beginning of a sustainable strength. Another, perhaps more likely, scenario is between these two extremes. There may a phase of consolidation which may stretch into the next few months. The gold silver stocks may rise to settle in a slightly higher range. The new range may be wider and there may be movements based on fundamental performance of individual stocks. So even Coeur may settle into a higher range and get stronger if it spends more time around current levels. Of course, all bets are off if the market crashes or gold-silver give up their previous lows. For Coeur and many stocks from this sector, the recent lows have held a couple of times. So the confidence is higher that they may hold the lows if put to test again. The valuations have become so low that the gloom appears to be overdone. But now the parameters for valuations are linked to future outlook of the sector and normal metrics like P/E are not as important. That is why stocks like Coeur, which are trading at a significant discount to book value, still do not appear to be too attractive. Mostly, gloom and boom is overdone, and the smart investors do take calculated risks. Even strategic acquisitions at these times bear fruits in the long run as the assets are available at very low valuations. Coeur completed an acquisition recently in Mexico and had indicated that it may increase its hold in the properties surrounding it. It already has a 5% stake in Pershing Gold Corporation (PGLC) which is gearing up for start of production in a few quarters. Even Pershing needs strategic investors to meet the production schedule. Other companies like Silver Wheaton have also acquired assets / streaming contracts at decent valuations. A range bound scenario is likely for these stocks.

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    • Neither 'range bound' trading, NOR another bounce to lower support would surprise me.

      Have mentioned some Elliott Wavers suggest another move down for gold.

      Some are suggesting 1.19 or lower for euro.

      I'm wary of huge smackdown for major US indices and am NOT SURE how the miners would react.

      Hence, the upside bounce trading (selling into bounces).

      From a purely technical standpoint, until miners hold above the long term downtrend line, they are either 'shorts' or 'refrain from trading' UNLESS one is trading short term bounces, as I tend to do. Sometimes 10%, 20% to 50% in UPSIDE bounces, because I have never shorted a struggling miner or biotech. I prefer to short commodities or indices rather than individual stocks, and I don't like to short the metals.

      Peace

      Strategies for Profit for Good Causes

      Agape ~

 
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