NXG Gold Exploration Stock...

Discussion in 'Commodity Futures' started by gimp570, Sep 26, 2003.

  1. gimp570


    Just wanted to get everyone opinion in NXG. I think that the chart looks good. And with gold seemingly headed higher, I was thinking about purchasing some. I would like to here what someone else thinks about it. GOOD OR BAD.
    Thank you in advance

  2. gimp570,
    In my book, penny stocks (under 3$) with daily volume under 1M is a no!no!

    I did not do any research, but if NXG is a gold exploration cie, I don't think gold price would influence it greatly.

    Don't know why you think the chart looks good to go long, it just made a double top, and broke the neck @ 1.60.
    Don't think that the stock was trading @ 1.75, and now it's so cheap @ 1.55 . It may be cheaper @ 1.25 or 1.00.
    I once said to myself "the stock is @ 0.25, so cheap! how cheaper could it be !!??!!". It went to 0.05 :mad:

    If I wanted to play gold, I'd go with the gold producers, and not the gold explorers. Beside, didn't someone said that "a gold mine is a hole with a liar on top" ?
    I know, I've been burn with BreX :(

    Cheers!! :):mad:
  3. Well in fact Northgate Exploration(NXG) has an annual production of 290,000 oz of gold,not to mention millions of pounds of copper.They should do a name change because of the obvious confusion as to wheather its an exploration company or an actual gold producer.The person who was just posting doesn't know anything about the gold market and gold equities.Nothing personal dojibear.Two sites that would be very helpful for info would be Kitco.com and Goldsheets mining directory.I've been playing this sector for twenty years,which is currently trending up.I would focus onthe junior producers because of greater potential percentage gains,as oppossed to the seniors.Even though gold stocks have had a good run recently,buy some measures, most are still inexspensive.I dont know the specifics about nxg's financials, but at current gold prices , if they're not already profitable,they will be in the short term.BRE-X was also mentioned.The one scandle in this sector.As oppossed to who knows how many on the nyse and nazdaq?It was also almost ten years ago.
  4. gimp570


    Yes, there name is deceiving because they are also producers

  5. I personally like this stock quite a bit. As gold goes higher, you want to be in the junior producers. When NEM got to 35, I cycled out of my massive position in it and a few other majors and into the juniors. There is much more leverage to the price of gold. My favorite was and still is NXG.

    I do not know enough about the sector, but it seems that they have a lot of promising sites comming on line in the near future. This is my largest gold position with a basis at 1.15. I have not made any recent purchases up here, though I would add on an extended pullback. Good luck.

    I am interested in any comments that any major gold/silver guys have. This is my largest concentration at about 30% of investment assets.
  6. None taken, hollywood :)
    Those 'gold exploration' and under 3$ stocks are simply not my cup of tea. :p

    Cheers !! :cool:
  7. Thanks dojibear.I cant blame anyone for not wanting to be involved in this sector because its undeniably one of the most volatile.Everyones risk tolerance is different and I would not recommend this sector to those without ample market experience.You must also keep in mind that this sector fights the fed and most major financial institutions and to be involved in the sector usually means that there are problems with the global currency picture.I also own a few thousand shares of nxg ,as I do a handful of other small producers.agt,bgo,cbj,drooy,gss,wht. Last year I owned all seniors producers like nem,abx,pdg,fcx,bvn,but sold them when I was sure the gold trend was in place.Upon the ensuing pullback replaced those seniors with the juniors.The reason for this is that the seniors reach sizes which make it very difficult to have alot of growth,and therefore have more inherant limitations. Where as small producers have excellent growth potential and exsposure to numerous special situations.In 1996 when gold hit 400+ and traded in a range of 370 to 421 for ayear, bgo(bema gold) which is also produces gold and copper,270,000 ounces gold, reached a high of ten dollars.Before the stocks climb,the stock was trading in the two dollar range,because of the lower gold price directly affecting earnings.When gold brakes the $400 barrier and remains there, I would exspect all the above stocks to trade in this range or better.There is an outside chance that gold will go substancially higher in which case gold stocks could explode.
  8. Hollywood- Thanx for the notes. What do you read to learn more about good gold companies? In my heart, I think the Dollar is flawed. I think Silver, Gold, Copper are excellent long term buys (in that order incidentally). My problem is that I have a hard time valuing these gold companies, yet I know they have huge leverage to the price of gold and that I want to own the juniors. How do you choose to value them? How do you pick which are bettter than others? There are so many ways, and how can you be confident in their estimates of reserves, probable or otherwise?

    I also was in the same majors as you and sold them all. I am now long CDE,NXG,WTZ,CBJ, KRY, BGO, MNG, WHT all in about equal dollar amounts, with 2 parts NXG to 1 part of everything else. I also own a smidge of CEF, but it is hard to pay a 10% premium to asset values. Waiting on the ETF when it comes, but I still like the leverage in the producers much better.
  9. Just added to my gold position again. Dollar getting schmissed as usual. Down half a percent against the yen/euro.
  10. Praetorian2-I obtain most of my gold news from Kitco.com and the Goldsheet Mining Directory.com.Barrons,IBD,THe Financial Times,AP newswire,Reuters,plus numerous other buisness articles, are the bulk of my reading.My years of previuos experience in this sector has taught me that most companies that produce 100,000 ounces or better ,with a sustained gold price of 375,will operate profitably.I prefer companies that produce 250,000 ounces plus.As the metals continue up,these companies will realize more cash flow,enhancing their ability to grow by property aquisition,increased production,joint ventures,and exploration, to name a few.The 100,000 ounce producers usually have to work to maintain production.MNG,EGO,CAU are in this group.You probably saw how BGO,CDE,CBJ moved the last 10 days, moving strong and hard to new highs.Tipically you dont see those kind of moves in the 100k producers.But I do own EGO,CAU ,and did own MNG because at the price I bought them,there was no downside.I've sold MNG because the last quarterly report indicated they might have to close a mine .I own CDE,BGO,CBJ,NXG,WHT and kry is on my watch lists. I wouldn't be concerned with to many new gold stocks, it seems we both own the same winners. I would just like to add to my winning positions.
    #10     Sep 30, 2003