gdx - first good post made reading all the #$%$ worth it - thinking about:
The chart on this stock is absolutely catastropic since Jan. 12 or so. From about $7 to U.S. .27 today! Ouch!
However, JAG came up on the radar of a newsletter I respect, that once in a while offers a really left field flyer, in this case JAGGF. It certainly has been beaten down, with good reason, but that does not mean it could not recover considerably. It is grossly oversold on a short/near term basis. Both Dines and Seville, and with my own limited view/understanding of gold charts, point to around $1500 and perhaps a little more for gold between now and December. The estimate is that JAGGF would double or more if that happens.
So, at U.S. $0.27-.28 I am a buyer with the goal being a double or more between now and Dec. I would point out that September is historically very uncertain for stocks, same with October, but September is very good historically for gold/stocks; and, from now til December is usually quite positive for precious metals. The risk is worth the potential reward here. I'm a buyer here.
JAG's own CEO said he was projecting $1600/oz gold during his yearly forecast. That was early this year when gold was at or above $1600. JAG has not revised numbers downward yet and have burned through all of their cash. You really think a short-term rise in gold to even $1500 is going to cause JAG to double in price? Good grief people, does anybody do their own research or do they just trust the opinions of anonymous writers who may or may not have a position in the company they are Pumping.....er, I mean "writing" about?!
Very good post but you could just as well pick any other gold mining stock based on your comment. You do make a convincing case for gold, maybe even gold mining stocks but I would prefer if you would elaborate on why specifically JAG? Long term JAG looks like bankruptcy, it may have a double up but while other gold miners have had a double from their recent bottoms last month, JAG has been going down like a rock in the sea.
What can I say that is not said to your point in the first paragraph of my post. A newsletter I respect published by a person whose advice I have generally followed for more than fifteen years, and I name two such people i.e. Dines and Saville, offered a left-field short term risky suggestion and made a short term case . I won't quote exactly what was said in the newsletter because that probably violated copyright and endanger my subscription. Read my post again. It is all there. With a probable rise in the price of gold in the near term the vastly undervalued JAG could easily double or more. It will likely go bankrupt next year but I won't be around to read about. Gone no later than Dec. no matter what happens.
As to why JAG and not others, what can I say? It was a suggested flyer for those who want to take a significant short term risk to make significant short term profit.
I agree with all you said. I did say this is a 'short term' speculation, no farther out than December - and propbably much earlier. High risk for high short term payoff. I would never have bought JAG for any other reason - and here only because it was suggested as a high risk high reward potential BET by someone whose judgement and reasoning I respect.