junior miner mission is discovery, not production. They are heavily dependent on credit/venture capital. At the moment it is impossible to imagine a scenerio where demand will rise. We are correcting to the perception of strong dollar that will last forever and an inevitable rate hike.
But reality check, we do have crisis scenerios out there, and we do have a bumbling Fed.
after jdst marinates on those huge profits all weekend. Long term though jnug is in trouble. jnug maybe be 3x the juniors, but they are 20x sentiment on where gold will be 6 months from now.
The last such rally for jnug was Oct 8 when the FMOC minutes for Sept. were released. Fed members were fretting over world economies and a strong dollar and gold bulls ran on speculation Fed will not rush to raise interest rates. Tomorrow is a binary event for jnug, with much of the downside risk taken out for jnug looks like a good bet for tomorrow.
Junior miners are basically mining venture capital firms that can raise the necessary funds to do the exploaration to prove up the reserves.Geophysics,sediment sampling, environmental permitting etc....their mission is not to build mines and dig gold, but to advance properties and sell them to Major Mining companies. While gold futures are a factor in evaluation, juniors rely heavily on credit. JNUG is on the wrong end of the demand equation. If you have your mind set on averaging, down set a limit order way below your expectations, $5.60 for example. This market is moving way too fast for market orders. But if I was underwater on jnug, I would trade my way out by hedging with JDST. Yin & Yang, see-saw trading.Buy and sell jdst over and over, and harness the volatility.
That and the baba ipo, which created too much supply and prompted a re-evaluation of the market in general and a risk-off environment. Last week demand was finally coming back to the Chinese growth stocks with solid numbers. JD at this stage isn't even profitable yet , so it's going to take a change in overall market sentiment to get it moving again. A rising tide lifts all boats, just not as fast for the ones full of water. The Singles Day hype will start next week, and I believe BABA earnings speculation will be a positive for the sector, not an oxygen killer. JD's rally "story" will be their potentially invaluable Last Mile Network.
Biggest E-commerce week of the year in China, get in now , cover now , or hold on/buy more.
of a comparison. Near term catalyst would be Singles Day. Can't time the market but JD becoming an risk/reward opportunity.
CREG is providing all the drama and fear, not anybody posting on a board lost in oblivion, that no one even reads. The problem is a "civil exchange" in your mind entails agreeing with you, in which case I would lose alot of money. I think my review isn't selective, but succinct. 100 million in debt, a board of directors with questionable ethics, and trail a mile long of poor executive decisions. Just ask the reputable Carlyle. Bottom line, Creg is just "paper".....There is no "good price" to buy in, there is no "deal" no matter how low it goes...unless you are trading for a quick pop.
Good call, seems we are still early,but I agree JD will rally soon on anticipation of this festival. A 12 day buying spree on electronics. How about the iPhone 6 availibilty anyone?
good call on the XIV, another great trading tool with lots of volume, a new one for me thanks! This jnug see-saw is bound to break one way or another this week.
First civil exchange I've had on this board. I started following CREG last Dec, when they had an operating cash flow of -60 million( now -98 million). I think the term "value trap" is even too kind for CREG. ROE is ok but the ROA at 2% should worry you. Did my DD on the directors on Creg's Board which I posted (closer to Chairman Mao than Jack Ma).Possibly see tradable rallies for CREG but I think their real future is further dilution with a reverse split stock split. If you have the opportunity to get $2 a share I'd take it. I know you disagree but thats what makes a market. GL
with their last mile delivery? Will it help them with the Chinese consumer?
Is it just me , or does it seem the Miners are following Oil down? If this is the case the month of October looks good for JDST. Saudi Arabia is unlikely to make deep enough production cuts , to pick up market share and to strengthen their close relationship with US. Why would the US collude with Saudis to keep Oil down? Three reasons right off... weaken Isis, weaken Putin, cheap gas = low inflation before the November elections. Can Gold futures rise in this environment? I have a notion Obama wants nothing more than to turn the knife in Putin, it has become very personal.