Why are gold stocks with strong fundamentals dropping?

Discussion in 'Stocks' started by Jones75, Dec 14, 2020.

  1. MrMuppet

    MrMuppet

    Nah, with value plays you're buying the majority of the company for direct cashflow participation or voting rights.

    But buying because "value", waiting that other guys discover your play and pump up the price so you can drop it on the bagholders is called trading. Be it 1min or 10 years.
     
    #21     Dec 15, 2020
  2. themickey

    themickey

    Also free biscuit and cuppa tea at AGM
     
    #22     Dec 15, 2020
  3. XPeng. Its stock price target is $350!

     
    #23     Dec 15, 2020
  4. Jones75

    Jones75

    Very interesting.
     
    #24     Dec 17, 2020
  5. Cuddles

    Cuddles

    gold is generally an inverse to equities.
     
    #25     Dec 17, 2020
  6. ph1l

    ph1l

    Some recent 3-year daily correlations between GLD and equity ETFs are high.
    upload_2020-12-17_22-54-0.png
     
    #26     Dec 17, 2020
  7. Nine_Ender

    Nine_Ender

    You might note that the moment the sector becomes overly unloved is the moment some easy money can be made. Many of these companies make lots of money with Gold over $1700 and Silver over $20. The value proposition is registering on some miners already ( eg New Gold hit a new 52 week on Thursday ). The big miners are good value here and the more active junior and mid caps are poised to bust out on any continued strength in the gold/silver price. Even if nothing much materializes further short term, once the next production and earnings reports come out there should be more upside on most of these stocks.

    So while some posters gamble on speculative stocks in other sectors, eventually guaranteed to get burned on some trades, this sector will be fine in 2021. It's a fairly low risk area with large up side potential for the next 1-2 years.
     
    #27     Dec 19, 2020
    Jones75 likes this.
  8. themickey

    themickey

    Yup, gold & silver, coal, natural gas are the most sold off. (Uranium too but it's been moving up lately.)
     
    #28     Dec 19, 2020