Lot of year end tax selling - plus no upside from the fed - the latest is a voting dove that was all pro-bond buying - late this afternoon says now he is open to a much earlier and faster taper. There is just no upside to gold. I expect gold to fall to $1000 and that might drop the miners 40% from these levels just because most cost to produce are out of control still. The miners are in heavy debt and their costs are high. There wont be a bottom until everyone hates them so much you wont be able to give gold stocks away for free!!
I still would not go short - I just don't have the stomach for the volatility - but everything to me says these go much lower. There will be no big money - only fast money - until the miners get their cost below say $500 an ounce.
Its a tough call - Fed is manipulating the US dollar and despite taper talk will never taper until the US fully collapses - it can't taper - right now the US is running trillion dollar deficit paying only 2% on its $17 trillion debt - what happens if taper stops and interest rates rise to say 4% - which is low still? you know the answer full collapse anyways - so stop taper and the market collapse = economy collapses = interest rates rise = US gov't collapses = continue QE dollar debases = debt rises = economy collapses = Gov't collapses. Sadly you cannot eat gold. What do you think are the top 3 selling items in America? Bullets/guns/seeds - those are long term investments
only $18 buck to $1200 - probably would knock another 3% of the miners easy - Failing to hold the years low of $1187 would bring in tidal wave of selling taking the miners down maybe 20% so long as it hold $1100. Some of the Miner CEO's have been on interviews saying they expect $1100 very soon. Miranda gold is the latest just yesterday to call for $1100 gold very soon.
She hit the $17 handle back in the 2007 - 2008 stock market drop so anything is possible - right now it it purely in the hands a day traders - gamblers and hedgies
If Cramer is "pumping" something with in a down trend like golds - it means that he and his buddies are short and want to draw in more suckers
a 5%+ correction soon is possible in the market - It is almost certain to sink all boats - even the already beaten down golds.
I am waiting for a small market correction before touching these toxic stocks - it would be almost impossible for a market correction that did not drag these lower at the same time.
Would be interesting to see a bounce off that last low - until then it's risky - the miners are ultra risky - I think cost all in many of them are losing their shirts right now - I know Barrick is - well Barrick just keeps diluting the share base - screwing existing shareholders and giving more warrants and options to insiders.
Gold companies are almost broke - like Barrick - more debt than its worth and keeps diluting the share base - and you think these golds stocks will go up?
if it bounces back - missing 2-3% wont be as bad as a 10% further fall
Why even waste the resources - are people going to buy a $2400 z10 with leather and a porche name on it?
you know the play book - keep lowering expectations until they beat - then rally to new highs - Russell forward p/e now over 22
Gold had broken through the 150 day and longer term KEY support in the low $1270's
This means a re-test into the $1100's is almost guaranteed.
Looking to get back in if she can hold $1170's
I don't know how they will avoid a million civil lawsuits - they have mislead investors - lied - cheated - stole - how can Fairfax - an insurance company buy this knowing they will be responsible for all the civil suits?? I lost 30% of my account value on BBRY - you can bet you do diddy that I will be joining any AND all class actions suits againsts these fruadsters!!
Now we have a big raise in the restructuring charge- will this affect the buyout price?
I would not tough this with other peoples money until Dec sales numbers have been released - but then I think this will be a $5 max stock. Yeah yeah - I should short - but I don't have a trading margin account which you need to short(swore off margin years ago - er technically wife forced me off margin)
I have checked with a few dozen co-works and friends(mostly middle income people) and they all plan to spend at least 30% less after the Obama thing goes live. They also plan to by most stuff earlier on deep discount black Friday sales = no profit for stores. I don't know how this company will survive without a full debt re-structure.
You must be dumb - they have 200 million shares outstanding and are adding 84 million more - you call that not "dilution"??? LOL For earning they will need to then calculate using 280+ million shares from now on - earnings I should say losses!!