I believe risk reward in gold stocks has greatly shifted toward
the lower cap stocks. I offer XG, which has $30 m in cash and
a bonanza grade project in Argentina (9 yr. , 250k per year,
production decision later this year, if Argentina doesn't
expropriate :-) . No reason for them to do so , they
need the investment in mining sector.
I tend to buy gap refills at support vs. waiting for breaks, but
this one can be done either way and has enough volume to give a
legitimate technical setup. Little gap ticks at $2.5 are
filling, gap on 5-17-12 at $2.25 or so.
Probably 20c-40c dow, and $2-4 up on this one, and it shouldn't
go to zero, unlike a lot of these juniors.
Yesterday, XG, like a lot of stocks, had only the 5/17 gap below
it and was resting at support in about as low of a volatility state
you're going to find it. I just didn't see us
going back to fill that gap right away. Now if you try to
chase, you're almost certainly going to get whipsawed back into the
gap that opened today.
BTW, my favorite in the GDXJ is Semafo, (SEMFF, CA:SMF) which
led the sector a couple of years ago and is a giveaway here and
below, three producing mines , 250k year oz, with growth, paying a
dividend p/e in the 12 range, peg less than that. RGLD, AUY,
AEM , very solid at higher caps.
SLW is a silver royalty play, AG probably the best mid level ag
producer, EXK, good too. SIL index best of the ETFs. New Gold
NGD also good producer in gold.
just be aware that there is always risk from repatriation, and
the president over there has been very active with an increase in
that activity. It's always a risk in those countries
Posted by mdschapiro on 31st of May 2012 at 02:09 pm
Hi there, just some inside info from Argentina (I am from
there):
They will not let anybody pay dividends outside the country and
they will default in their sovereign debt sometime next year.
Capital controls are intensifying and they really do not give a
damn about foreing investment. So please be careful.
thanks for the charts, GDX today is under performing, while the
market has bounced off the lows, GDX weakened.
on your XG chart, no real setup yet as you show yet,
thanks for posting charts as not enough of our members post charts
and I wish more would do so. Yes the junior stocks have real
problems with funding especially, these stocks have had some
amazing corrections in a short term and a lot of the juniors
especially have real funding problems, there was an article that
Freddy posted a few weeks ago where an analyst was interviewed
regarding the juniors.
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XG $30M CASH GOLD DEVELOPER RETESTING LOWS
Posted by cmunny on 31st of May 2012 at 01:45 pm
I believe risk reward in gold stocks has greatly shifted toward the lower cap stocks. I offer XG, which has $30 m in cash and a bonanza grade project in Argentina (9 yr. , 250k per year, production decision later this year, if Argentina doesn't expropriate :-) . No reason for them to do so , they need the investment in mining sector.
I tend to buy gap refills at support vs. waiting for breaks, but this one can be done either way and has enough volume to give a legitimate technical setup. Little gap ticks at $2.5 are filling, gap on 5-17-12 at $2.25 or so.
Probably 20c-40c dow, and $2-4 up on this one, and it shouldn't go to zero, unlike a lot of these juniors.
XG - 62% RETRACE OF $2.50 TO $3.40 RANGE
Posted by cmunny on 1st of Jun 2012 at 01:56 pm
Yesterday, XG, like a lot of stocks, had only the 5/17 gap below it and was resting at support in about as low of a volatility state you're going to find it. I just didn't see us going back to fill that gap right away. Now if you try to chase, you're almost certainly going to get whipsawed back into the gap that opened today.
BTW, my favorite in the GDXJ is Semafo, (SEMFF, CA:SMF) which led the sector a couple of years ago and is a giveaway here and below, three producing mines , 250k year oz, with growth, paying a dividend p/e in the 12 range, peg less than that. RGLD, AUY, AEM , very solid at higher caps.
OTHER MID CAP GOLD SILVERS: NGD, AG, EXK, SLW
Posted by cmunny on 1st of Jun 2012 at 02:21 pm
SLW is a silver royalty play, AG probably the best mid level ag producer, EXK, good too. SIL index best of the ETFs. New Gold NGD also good producer in gold.
Not to quibble but...
Posted by CopperMtn on 31st of May 2012 at 02:16 pm
Production is scheduled to start in 2014, according to a press release dated yesterday.
http://www.extorre.com/pdf/2012_news/Extorre_news_120530.pdf
XG
Posted by kevin currie on 31st of May 2012 at 04:04 pm
just be aware that there
Posted by matt on 31st of May 2012 at 04:15 pm
just be aware that there is always risk from repatriation, and the president over there has been very active with an increase in that activity. It's always a risk in those countries
Repatriation
Posted by kevin currie on 31st of May 2012 at 04:52 pm
2014 if true, is an
Posted by mdschapiro on 31st of May 2012 at 02:25 pm
2014 if true, is an eternity in Argentina...
Argentina mining
Posted by mdschapiro on 31st of May 2012 at 02:09 pm
Hi there, just some inside info from Argentina (I am from there):
They will not let anybody pay dividends outside the country and they will default in their sovereign debt sometime next year. Capital controls are intensifying and they really do not give a damn about foreing investment. So please be careful.
thanks for the charts, GDX
Posted by matt on 31st of May 2012 at 01:55 pm
thanks for the charts, GDX today is under performing, while the market has bounced off the lows, GDX weakened.
on your XG chart, no real setup yet as you show yet, thanks for posting charts as not enough of our members post charts and I wish more would do so. Yes the junior stocks have real problems with funding especially, these stocks have had some amazing corrections in a short term and a lot of the juniors especially have real funding problems, there was an article that Freddy posted a few weeks ago where an analyst was interviewed regarding the juniors.