bb, GDX is back to its recent high so I'm back where I sold my NUGT, never having gotten a chance to buy back in. I can't believe we won't make one more test of the $1290 region for gold this summer, but as always, WTHDIK? I'd be happy to read your thoughts.
Hold is my opinion. Gold got down to $1179, very close to my target of $1175-I have done some buying yesterday and today.
Perhaps gold falls further, but over the next 1-3 years I give it good odds that gold doubles from here. Gold peaked in 1980 at $875. Today's inflation adjusted price would be $2410. At the current low price, new projects are getting canceled, so going out into the future the supply of gold may be flat to down vs average increases of 1.5%/year. Paper currency supplies are going up 4-6%/year. So, over time, gold will be relatively scare vs paper currencies-hense gold will become more valuable. Once the trend starts, the momentum buyers will carry it to new all-time highs-even inflation adjusted.
I suspect there will be a lot of overhead resistance for GDX around $30 since many who entered around there will be happy to get out even. I think we see one more dip from there for perhaps the last best buying opp. Or....?
Although I am bullish on PCTI, over the next 12-18 months and recognize that an LBO is possible, I have been trimming my inventory when the stock has moved above $8.05-the reward to risk ratio evenly balanced above $8 in my mind.
Mgt, has done a good job w/r to damage control concerning TelworX. However, that damage control only has TelworX breaking even in 2013 vs my estimate, at the time of acquisition, of contributing $.10/share EPS for 2013. Should the stock break back down closer to $6, then I will replace the inventory I bought.