BrucePile

Comment Stream » AEM

Comment Stream
Filter comments by:
Highest rated Latest comments
Or filter by symbol:
  • Pamela Aden: Ready for a Rebound?
    Many gold stocks, even though they've come off their Nov. lows by a lot, are behaving like a break-out group with a wide selection smashed down near levels they were at clear back at the start of the current gold bull market ('01,'02) only with much better operating cash-flow levels and sharply growing revenue. They are typically a group that is not good cash-flow-wise, but many of them are looking like value selections now.

    NXG, Northgate Minerals, is a case in point with a price/sales at 0.5 and a preposterous price/cash-flow at 2.6! Yet the market has priced this one like a cashless piece of rubbish at $0.90. This odd pricing may be due to their some $72 million worth of problem auction debt with liquidity issues. Does anyone have any insight on why Northgate has been so apparently mispriced by the market?
    Jan 04 08:18 am |Rating: 0 0 |Link to Comment |View article
  • Burst Bubble? Commodities' Long-Term Story Remains Intact
    If you look at a chart for relative valuation between paper and hard assets over the last 50 years, it's clear that there is a powerful cycle at work with about a 15 year bull/bear phase. We seem to be clearly beginning a bull phase for hard assets that is just now getting going (only about 4 years into it). The cycle has yet to even revert to the mean.

    As for the volatility that goes along commodities, you can either be the fast trader and try to anticipate each gyration and buy and sell around them (good luck with that) or you can dollar cost average into a line-up buying more aggressively after the corrections and adjusting the line-up only if the good areas of sector warrant it. You pretty much have to make up your mind which approach suits you and stay with it.

    It seems to me that most fast traders anticipate 4 or 5 phantom corrections for each real one and wind up rotating in and out too much and being on the sidelines when a lot of the quantum surges happen when they least expect them. They chop the bull climb into bitty pieces of small gains to mix with small loses, which typically results in underperforming a more stable strategy. Not that there aren't traders who can do better with faster trading, but averaging better long term results this way is precarious to say the least.
    Mar 20 17:57 pm |Rating: 0 0 |Link to Comment |View article

BrucePile's Comments Stream Stats

  • 94 Comments, 37 , 9
  • Total Comment Stream rating - = 28