FNMAS is being heavily manipulated and accumulated imo. There ZERO reason for it be trading lower than FNMAT. Both are $25 coupons if Fannie is left intact. They are equal to other preferred's and rank ahead of commons in liquidation.
Thursday I had bids 2-3 cents above the "ask" and they weren't filling. My broker never misses a beat and for 20 years has been INSTANT on bids at the "ask". That leads me to believe there was a line covering and accumulating.
- Market Talk
"Serious delinquencies (at least 3 payments behind) in Freddie's (FMCC) single-family mortgage portfolio fell below 2% for the first time in 6 years in August, just-released data show, as it and sibling Fannie (FNMA) continue to see their holdings' credit quality improve. The rate fell to 1.98% from 2.02% in July and 2.64% in August 2013 after peaking after the financial crisis above 4%. Delinquencies topped 5% at FNMA, and its drop has been even starker as it too fell below 2% for August at 1.99%, the mortgage financier said earlier this week. Amid the falling delinquencies, the firms have been able to send billions of dollars a quarter of late to the federal government ."
Harder and harder to justify winding anything down with ever improving numbers.
What will RIC do when they run out of cash and gold is only $1000/oz?
before you buy into these things.
After last "earnings" release, one could have read the following statement and been misled into believing that the company would be profitable and not need to print shares;
"Mr. Carmel concluded: "As a junior gold producer, Richmont is now in the relatively rare position of having discovered a sizeable, high grade deposit from which to profitably grow into the next tier of gold producer."
But then they printed over 8M new shares just weeks after the statement and there's no signs of them turning ANY profits imo, unless gold jump over 50% or so.
I warned people of another Canadian junior "miner" CXZ as it diluted, reverse-split, diluted some more, went to .03, then got de-listed. They even had "Mr Incredible" pumping it with his news letters before the final descent from almost $3 to .03
Why was there no press release on Yahoo about the recent share printing? Do the think they can sneek the dilution past shareholders? I had to learn about it through my brokerage press releases.
This is just step one to my dilute and reverse-split call I made several months ago. Now they burn through the cash and the stock will fall below $1 for more than 30 days this time. Then comes the reverse-split to keep it listed so they can tap shareholders for more cash later when needed.
Dilution and reverse-splits are not a viable business model, but these junior minors live and die by it.
Shareholders would be better off if the mining ceased and all personel was fired. Something is terribly wrong if money can't be made with $1,300/oz gold. Maybe it's just good 'ol crooked management getting rich off shareholders?
It's just a trade tool, not a real investment. Gold needs to be $1400 and rising for this trade to go up.
Here's the problem with a mining co. like this;
Say they have $500M in gold in the ground.
They pay out expenses to dig the gold. That money disappears.
They sell the gold and receive X amount of cash.
Meanwhile, their mine is now worth that same x amount less becase that much gold just left it.
And the whole time they are paying taxes on the land and any "profit" if they make. So they are essentually just stripping their mine of it's gold at a loss and going back to shareholders for more money to keep doing it.
They shouldn't get any shares and they should give back 2/3 of their salary for losing so much value in the company. The cash rising slighly Y-O-Y is very deceiving. After a closr look, I see that receiveables/payables net fell $52.8M. That's a lot of money that just "vanished".
Warren Buffett says one simply needs to invest in the S&P each month and beat most other investments. He has been spot on!
He says that he would rather own farmland than gold because gold has no yield. Wake me up if he ever changes his mind.
Peter Schiff was wrong about the taper (twice) and he will be wrong about interest rates and gold prices. Why else would he be selling gold?
I've watched this co. go from $60M in cash and 0 debt to $17M and over $5M in debt in less than a year. Why can't you see reality?
Will they still be holding at $1075/oz? Will they stop digging at that price?
Yellen needs to trim the stimulus back more and raise the interest rates soon. The GDP (if you believe that) today gives her the green light to do so. That won't be good for gold.
Why would companies PAY for advertisement on TV and everywhere else just to sell gold if it's going to be worth so much more? Nobody paid for ads to sell their GOOG or AAPL stock when they were cheap. I highly doubt these gold pushers are doing strangers a favor and paying to do so.
And they are running out of cash.