Geez. What appeared to be the best undeveloped high-grade gold deposit in Canada, perhaps in the world, now is in doubt.
It seems like whenever explorers refine their results it turns out the deposit is a lot less positive than what was thought.
And then you have the cash cow gold mines in South Africa getting mined out, and you have resource nationalism all around the world seeing that even where there may be good gold deposits it is a fools errand to try to develop one.
What I wonder is, where in the hell is future gold production going to come from? It would seem we are facing a precipitous drop in global gold production in coming years. The only silver lining is that anyone who does have a mineable gold deposit in a non-kleptocrat jurisdiction is probably going to do extremely well in the long term, since plummeting global gold production should lead to skyrocketing prices, even aside from global monetary printing presses running 24/7.
Microsoft tablet considered by the consumer to be inferior to Apple.
Solution: Come up with a new tablet and charge as much for it as an Apple. Whaddaya mean this product is inferior to Apple? How could it be when we are charging just as much for it?
Well, as an INFN shareholder, it makes me feel better about the money I pay to Centurylink every month for my phone and internet.
In fact, since KLIC dominates the wirebonding business, then you can say that if KLIC has a couple of dominant customers then a couple of customers dominate the whole industry.
Where would they go? These guys dominate the wirebonding market.
The only big risk of lost customers is to new assembly processes, but I am not aware of anything looming on the horizon that threatens to replace wirebonding, plus KLIC has R&D underway on those new technologies.
Barrons recommendations are usually marginal because they recommend stocks long after investors have recognized the value in the stock and bid the price up a lot. In this case they caught a value stock earlier in itws up cycle than they usually do.
Yeah, usually Barrons recommends stocks once the horse is already out of the barn. On KLIC, however, it was only around the 8's or so during the tech slump of 2012. Many techs have doubled or tripled since then. KLIC has just risen from 8 to 11, now 13. I would say that in this case Barrons made its call when the horse was just beginning to leave the barn.
I sold 300 of my 2800 shares in the low 13's. Still a very undervalued stock. I'd sell some more in the upper teens, but and would probably sell most of my shares if it gets to the mid 20s.
The obvious reason for the rise in KLIC is the barrons article. A stock written up in barrons typically shows this sort of up tick on the day following the weekend that the article comes out. (The monday issue comes out on Saturday morning)
I don't know how that stuff works, I just get the paper edition of Barrons. Got an introductory subscription dirt cheap. If I have to pay a lot more when renewal comes up I will have to think twice. I feel like I get a lot of useful perspective on the economy from Barrons but I generally don't find their stock picks very enlightening. Usually what they recommend are stocks that have already gone up a bunch. And the ones they pick probably do often have more upside but the gutsy thing would have been for them to recommend those stocks when they were in the tank.
Beat me to the punch.
Yes, a full page article in Barrons discussing how it's the kind of value stock that Ben Graham would like.
Well, I am a value investor and that's why I own it. I also believe if you shrewdly pick growth stocks they also can be winners. My main growth stock is Infinera, which I believe has a prospect of huge growth due to its having the best technology for large-bandwidth fiber-optic data transmission networks.
But mostly I go with value, and that fits KLIC to a t. One can argue whether it's a tech stock or an industrial machinery stock. Either way, the numbers are compelling.
Bottom line: I don't know of another company with a stock at this good a price relative to their balance sheet and business status. Perhaps you can find one but you will probably find it has skeletons in the closet. No skeletons here.
Doesn't seem like there has been that much volatility in KLIC compared to their peers. They went up some in the tech rally of the last year, but a lot less so than many others. Sitting around 11 for some time, they seem a lot more stable than some tech stocks. Some of my other techs have been likewise pretty stable, however, e.g. Cisco. Western Digital seems to bounce between the low 60s and high 60s and I have been trying to ride those little waves to make a few bucks.
Just not sure who's business this would fit into. I suppose if a company like AMAT wanted to strenthen its position as the dominant force in semiconductor fabrication equipment, they might have an interest in KLIC. Or perhaps one of AMAT's competitors might be interested in using KLIC to jockey into position to challenge AMAT for the #1 spot. I would think any possible buyer would likely be one of those "jack of all trades" semi eqt companies rather than a specialist in a particular area like ASML.
Well I am out. But that doesn't mean I am convinced PVG will be a bust. I just can't afford the risk.
One point that I believe favors the bullish side: Look at how little there is out there in terms of viable undeveloped gold deposits. PVG has what appeared to be one of the best in the world, if not the best, in a reasonably politically favorable jurisdiction. And yet there is a cloud over it.
Just think of all the janky deposits in other parts of the world. If PVG's analyses are subject to question, just think how much more so the analyses regarding deposits in unstable parts of the world. Not to mention the huge political risk that you will never see a dime in profits even if a deposit is indeed a good one.
So to me the big question is: Where in the heck is gold going to get mined to keep up with demand, even if demand is weak? I just don't see where the supply is going to come from. South Africa is politically shaky and the low-hanging fruit is all mined out.
Just on a supply and demand basis I don't see how gold can't but skyrocket in the long term. And that's not even considering the factor of debasement of paper currencies around the world, that could be a huge additional turbo boost to gold prices.
He's no worse than the other bozos we've put in the White House in recent years.
Down 3%, bought a few. Probably there is going to be a general market downturn and INFN may drop to 7-9 during that downturn and that's really when I ought to be buying more shares but I couldn't resist getting a few on today's slight downdip.