RIC earnings had huge increase YOY with gold at $1450~/oz, now gold is ~1800/oz and probably will be $2000/oz towards end of yr.
....Just imagine another 400-600$/oz added onto earnings!!
And the PE is very low as well right now, getting lower .....
because miners have much more gold than individuals could afford!
as gold heads higher, RIC and other gold mine stocks also will go higher, because people know their earnings will be X3...X10 more than last Q. Earnings always drive a stock higher. And the market always bakes in future stock price at an earlier stage = expectations.
When RIC comes out with a dividend (because they are debt free now) this stock will be $15-22 IMO.
If you believe gold is going higher and will stay higher for next 10yrs, then you should be accumulating good gold mine stocks like RIC right now while they are cheap...IMO.
In about 85 days, so don't wait to make decisions based on that. RIC options expire tomorrow, which may have an effect on the stock, or you may have to wait until the market recovers or RIC starts milling ore from their next mine to see the stock go up.
Well, first off when you get a big move downward in the djia it tends to bring almost everything down with it...The other thing is RIC has jumped from $6.50 to nearly $10 in 2 months so it doesn't exactly "keep going down"...
In the decade I've been buying gold and gold stocks, I've met no other gold investors. Most of my friends are heavily invested in common stocks, but no gold stocks. Some own a few gold stocks because their brokers told them to allocate 5% of their holdings to gold, and they're not crazy enough to buy coins. They don't actually like the miners in which they're invested, they just allocate capital. So, when the stock market goes down and they get margin calls, they sell what's gone down the least, what they never really liked anyway - their gold stocks. It's why I think gold and gold stocks have so much farther to run - because there are still so very few serious gold investors. That, and the fact that 51% of the US population now lives off the other 49% and they can outvote us. They don't care about debasing the currency or spending the nation's wealth, as long as they get their checks for doing nothing. If I were to devise a stock filter it would pick gold miners with operations in stable Western countries with well educated populations, and rational governments, like RIC and Canada.