Thankyou Hollywood. I do not own CAU or EGO. I have heard some talk about the majors using their cash flow to make some acquisitions of the smaller players. Some of these small guys own land that they do not have the resources to use. I really do not know specific names. I wonder if there is any type of buyout premium implied in any of these yet...? Of course, you never buy a stock just for a buyout. This 400 level will be one tough nut to crack. We have made a few passes at it and are a bit overbought. If we chop around 380-395 for a few weeks, I think we can make a sustained move. Anything over 400 and I think that a lot of the remaining bears will cover. I hear a lot of talk about the commercials unwinding their hedges, yet the net commercial short position continues to grow. Who keeps shorting?
Praetorian2-Glad to help.The small guys you refer to are future producers and exploration companys.GBN,AZSRF,NVGLF,are several I follow.All have interests in excellent quality properties,not yet producing. I'm not sure we can break 400 just yet because I think the foreign central banks are about to begin a new round of propping up the dollar.However,it wouldnt surprise me if 400 gold was old news by next summer.JPMorgan holds 80% of all put related gold derivatives.
Hey, Thought we needed an update. NXG looks good now, up like 30% since it was posted on here. Too bad I only have 40. I don't think I added to that, if I did, it was pennies. I bought a smidge more of most names on wed thru fri. Nothing much though nickles and dimes. I added a quarter of GBN on friday though at 1.5. That chart looks best I guess.
Gold looks good....But BGO should be the one that we are all talking about. What a move! It is at 3 bucks now. M
Its been a couple months since I read GBN's reports .The last I read ,mining would begin the first half of 2004 with joint venture partner Hecla.Because of the high grade ore, are projected to be profitable before year end,2004.Production cost per ounce will be amongst the industries lowest.BGO has had anice move but I'm not sure its because of gold.The price of copper has been moving up from the mid 70 cent per pound range up to 91 cents the last I checked.BGO's world class Refugio copper mine in Chile ,poduces tens ,if not hundrds of millions pounds of copper.The gold from this mine,about 100,000 ounces,is actually a by-product of the copper mining.An aquisition early in the year will put anual gold production at about 270,000 ouces, up over 60% from last year.BGO's project in Russia will probably put them over half a million ounces anually.I believe mining will commence their ,next year also.Dont forget BGO 's interest in the cerro casalle gold project,another fantastic property.The other stock besides GBN and BGO that I like, because of the news they will be announcing is WHT. Also making an aquisition early in the year,WHT will announce production of over 400,000 ounces,quadrupling their pre-aquisition production.They didnt get a deal on the property,but that s because the property was already profitable.
Hollywood, as always, thankyou for your input. If you like BGO that much, I'll add a few more tomorrow. I loaded up on SMH puts today. Feels toppy, but then TXN reported a good number. I will probably add a few more. I'm buying Nov/DEC 37.5's. At a buck or so, it seems rediculously cheap. Premiums haven't been this low since I was in diapers.
Your more than welcome.I like BGO and the others we've discussed ,and would buy more tomorrow,but Iwent all in last week.I would take a second out on the house if I owned one.370 has proved to be a solid base.I think by next summer, the prices you pay today for goldstocks today,will seem cheap in comparison.By the way, BGO,CBJ,WHT,CDE,AGT,NXG, and METLF were last weeks buys.
Powerful day today. Any idea why? Currencies barely moved. I agree with you, if you look at where many of these traded back in 96, when we were last in the mid 400's, you can really be looking at 20 baggers. I own all of those except AGT (didn't like how the chart has not kept up) and METLF b/c I can't trade BB stocks in my fund. I bought 20,000 PMU today also. MNG really was extra strong, but I guess that they take turns to the upside, so it probably lags next week. Glad I took 30 more GBN on friday at .5, seems like the right move. I haven't added much more gold, and I do not think that I will unless we shake. I am full (I think). I own NXG,KRY,CBJ,BGO,WTZ,MNG,CDE,CAU,GBN,PMU. I doubled up on SMH puts. DEC 37.5's are at 1.25 now, seems stupid not to be taking down a lot of those. They are way too cheap. Also shorted more SMH common and some e-mini's in my own account. I am 99% confident that we have topped out for the century. I'm like 40% long gold, 50% long other stocks, 110% short. I hate being margined to the hilt like this, so I hope we get a good move soon to build excess equity. Good luck man, glad to see someone else on ET who is a long term player who understands what he is looking at instead of just scalping e-minis.
Another 6 pts. I really cannot find news except the absolute collapse of the euro, and drubbing in yenland. Surprisingly, the 10 year is up today. I added a few more SMH puts while covering my common for a beener. Hollywood, I think we are onto something, this board is just me and you, really an ignored sector, even with all the doubles and tripples. It tells me that we have a LOT more to go before any hot money shows up.