Today is ex-dividend day. The last day to purchase GG for the "free" $.15 dividend. The day of record is the 18th, but it has to be bought today to be an owner of recoord by the 18th.
I did a comparison on GG and GLG for the last three months (since the breakout in gold) . . . they seem to track perfectly in value. I agree that GLG is probably a better "catch-up" play, but GG is looking pretty good. I just sold my GLG to swap it for GG and pick-up the free dividend. I do this because I don't have the ability to write naked puts (or the chutzpah).
Also IMHO, GG's copper exposure it not going to hurt it in the near term because of LME weakness.
First, it is NOT "15 cents", it is "1.5 cents" ...
Second, it is not "free" for several reasons ... one, it is taxable income to you; two, the Canadian government will withhold 15% "non-resident tax" (which you can claim as a tax credit on your personal income tax return); three, the stock price will tend to drop by the amount of the dividend; less funds available for the company to invest in internal growth hence reducing the value of the stock and the company over the long term ...
If you need cash flow from your investments to live on, that's fine ... but there are much better alternatives than a lousy 1% annual dividend that is far from "free" ...
Pwr said, "They both are outstanding companies, my only reasons for placing GG second are:
<I know I'm missing something, check out the facts below. LR>
- GG has to assimilate this last major acquistion, there are always problems
< No argument>
- GLG is USA based, GG is in Canada (currency risk)
- GLG is growing reserves rapidly and intrinsically (no acquistions)
< This is where I think you need to clarify. GG has projected 1.1 Million oz for 2005 and 1.6M by 2007 at a cash cost of $60 an oz. GLG on the other hand is projecting 700K at $150. That is a pretty big delta if the climate you are predicting happens in the next 8 months. This part of your equation doesn't seem to add up. What am I missing?>
- GLG has many mines just coming on line to production
<GLG has 3.5M (probable)oz of silver in 2007 for a total proven and probable of 49.7M oz. GG has 18.5M (proven) NOW with a 145 M oz inferred!
- GLG management can be trusted, GG has new, untested management (I loved GG old CEO) <I did too>
- GLG is a pure play, no Copper (I think Copper sinks as the world economy slows)
<It does . . . just not in the short term unless one believes that the supply is being falsified by market manipulators.>