Question for an investor type on TVX

Discussion in 'Trading' started by aura0663, Jun 10, 2002.

  1. aura0663


    Having traded the gold stocks (ABX,GFI,GG,THV) several times in the last month or so, I am now stuck with an unfamiliar set of circumstances. For some reason, I only ended up holding on to a few shares of THV and now I'm faced with the question( as a result of the triple play buyout today), would anybody think that this might be something to hold onto for a while? My backround in trading has been oriented toward the much shorter term, so I am unfamiliar with how something like this might play out in the longer term. Then again, maybe I should just sell the news and take my beer and whisky money
  2. trdrmac


    Over the past two years I could probably count on one hand the times I sold something for a profit and felt bad later. If nothing else, sell 1/2 of the position and see what happens with the rest.
    The market will usually take the price through the offer if there is speculation on a second or a higher bid.

    I don't know about the deal, other than what I heard during the day, but if you short the acquirer and stay long then you could wait for the spread to close. But if the deal busts, like GE HON then you will take it on both ends.

  3. Babak


    I would be careful with gold stocks. I'm not at all bullish on them right now, some of have cracked and others are wobbling on support. XAU broke the 50 day MA today. Also Kass started shorting them last week which raised a red flag for me.

    A very loud bell was ringing for those listening when gold fell on the "dirty bomb" news story today. Usually it would shoot straight up on any sort of fear news. Another blow is the Pakistanis and Indians snuggling once more.

    DROOY is probably the poster child of the gold bugs and it was hit hard today. A lot of volume, gapped down and kept going south. Unless you are doing some hedged merger trade I would advise against holding for the moment as momentum has left the building.

    But then again I could be wrong. Wouldn't be the first or last time.:p
  4. aura0663


    THV provided beer money for the rest of the summer today, and I ain't talking Blatz ( if they still make that)
  5. I agree with Trdrmac only I would sell 75% of position and watch the other 25%. I wish my problems were that i sold out of a profit too soon rather than too late...
  6. the bank of japan started supporting the dollar last week, and the fed has started selling gold directly to money center banks that are heavily short gold to reduce the short squeeze.
    I think that explains the bad week for gold stocks.

    I'm bullish on gold for the longer term though because all the conditions are lining up. I don't think the fed will raise rates until inflation is already here, and by then it will be too late.

    If you hold onto your TVX you will own a piece of KGC which will be the largest totally unhedged gold producer based in North America.
  7. thv isn't a gold stock.
  8. aura0663


    Are you in the Millennium Trader room--- Lightening/Thunder reference?
  9. aura0663


    We ain't talking bout that rocket THV (of which you are a major shareholder)-----TVX
  10. stevet


    there are a lot of very rich people who always made a habit of selling too early

    however, with gold, too early maybe when the price hits $400, then buy on the retracement and then hold for $500,but it may shoot through here on its way to $1000, but i would definetly tuck in some profits at $1000

    gold is a whole different ball game to stocks and other commodities, it only gets to shine occasionally, but once people see the glitter, they cannot get enough of it

    and if it holds it price, when there is no sign of war and the economics seem to be settling down - get ready for some serious asset eroding inflation - and some real profits in gold
    #10     Jun 12, 2002