Hi, new to the forum but have been a gold investor for some time.
If anyone follows Minefinders Corp. (MFN), you'll note that a) they released Q3 earnings today, and b) the shares are trading down significantly. But from what I read in the release, there doesn't seem to be anything troubling looking forward. MFN had some trouble this quarter and missed its guidance because of a one-time problem with equipment on the leach pad, and cyanide supply problems that have since been corrected.
Does anyone else have any insight into why the stock is off 7.75% at time of writing this morning? If this is just trading based on bad news for the sake of it being bad news, then now is certainly a great opportunity to pick up some more shares at a discount.
Minefinders is well liked by the newsletter experts. Its a good solid company. But just looking at the chart,daily and especially the weekly, what stands out to my vision is that ....precisely because Minefinders is so popular and a favorite of investors....the price action has made two very soaring moves to the extreme, very fast, this year, followed by extreme sell offs,as one would expect....this is what happens to a 'bubble stock'... when it becomes a crowd favorite. Looking at the weekly 200 MA at 9.90 , yikes ! thats like almost 100% distance from the top...and the greater neckline on this chart cuts thru the 12 dollar area. a basic ABC correction from these extreme tops would target the 12 dollar area. which means it still has a ways to go to get back to realistic price levels. the ,whats it called, return to the mean.
Those two soaring rushes to 18/19 this year and the plunges back down to 12 area...... this is what happens when a stock becomes a crowd favorite and everybody is eager to buy it up. It may fall again to 12 and watch the crowd pile in again.
Buy the low and sell the high in this range might be the strategy.
To me, the 'discount' area is 12.... not now. maybe 13.
I've been owning MFN since several years (though I tuned down on my position locking in profits). The cyanide supply problems were reported on before (MFN was not the only miner affected). The trouble with equipment is indeed a one-time impairment to production. The two factors coinciding is probably rather lucky: output reduction could last longer if the incident were to happen when the leach pad output is at 100% of capacity.
The mill investment is going to reduce production cash costs over the years to come. So far everything seems OK.
MFN is still up over 30% YTD. Output has been rising at an astounding rate. Factoring in high growth makes the stock price level more vulnerable and susceptible to bad news. It's not the first damage to the leach pad either: Last year, a tear in the leach pad halted production for some time, which drove down the stock price more considerably. Investors recalling this may overemphasize the impact of the trouble with the concentrate collection pipe.
It is NEVER a good idea for a public company to do business with confirmed crooks, particularly securities crooks. Its called the "Tar Baby syndrome"
Yeah well this management has shot itself in the foot by advertising on Stockhouse.com. And what is the story on SH?
Well at one point it was a public VSE PoS looted stupid by Marcus New, who then created a bogus debenture, deliberately toasted the listing and then sold the assets to Thom Calandra to "satisfy" the bogus debenture. A simple google search on Mr. Calandra reveals he was nailed red handed by the SEC for scalping to the tune of a $540k fine. (Scalping is recommending a stock while selling)
To this very minute SH censors truthful facts out of existence for its paying scamjobs.
At an absolute minimum Minefinders has failed to do the most elementary due diligence on the mutts it deals with, and that is inexcusable for a public company. The impression is that their name must be as dirty as chitbag Calandra's. This brand of rubbish is NEVER good for shareholders and your boys should bloody know better.
I sent an e-mail to the Co about these SH basterds a week or so ago and I haven't seen any Minefinder ads on SH since.
I believe the oversight has been corrected, and a good thing in this opinion.
Yeah well assuming some salaried retard cares enough to read an e-mail from the public regarding this Co doesn't make it so.
These dopes cannot do a simple google search before jumping into bed with a busted red-handed securities scum-bag named Thom Calandra. There is something called "fiduciary responsibility" and that's where corporate directors act in the interests of shareholders. Forget about that quaint concept from this dopey Co and ask yourself what these retards ARE doing.
They are very stupidly associating the Minefinders name with a proven crooked PoS. Its called the "Tar Baby Syndrome" and shareholders pay for it every damn time.
This management has provided a perfect reason why they should (fairly) be considered incompetent dolts and why this paper, under their dopey stewardship, should be avoided.