Newmont

3 posts / 0 new
Last post
#1 Sun, Apr 21, 2013 - 4:35pm
Gold Dog
Offline
-
Chicago, IL
Joined: Jun 15, 2011
1153
6762

Newmont

Hi Folks,

I have orders in for my wife and children to purchase Newmont, NEM tomorrow morning. They all own some up around $47 and this seems like a good time to add.

The fundos look pretty good to me-

P/E of 8.74

Dividend yield of 5.15%

RSI is below 30

They are just in an industry that the money managers are pissed-off at right now.

If any of you think I may be stepping on a land mine, other than another beat down and that Dr. Copper looks sick, please let me know. I try to be somewhat conservative with their holdings and am more interested in large cap steady comapnies that have good basic common sense managment.

Thanks a million in advance for any input you are willing to share!

Best,

Gold Dog

Edited by: Gold Dog on Nov 8, 2014 - 5:19am
Mon, Apr 22, 2013 - 7:19am
Gwyde
Offline
-
Belgium
Joined: Aug 29, 2011
803
2316

Difficult to advise

While dollar cost averaging always is suitable for bringing down your break-even level, it not necessarily is the best choice to obtain an optimal return on your newly invested capital.

Staying within the sector of major gold mines, it may be better to diversify, reducing thereby the specific company risk. Investors in Barrick will confirm: the value of their shares has dropped considerably more than have the HUI or XAU index. Barrick is a main component of both (as is Newmont). Despite the 'cheap valuation', I hardly dare recommending Barrick while present problems remain unsolved and the outlook is still unclear.

My personal feeling is that gold mining companies which have been performing well over the last decade, will more likely be the first to recover from the current slump. Newmont nor Barrick are playing in the first league. I would go for Agnico Eagle, Eldorado and/or Randgold. Your best buy for a couple of hundreds however is a subscription to John Doody's Gold Stock Analyst Top 10 for the next year.

Gwyde
Mon, Apr 22, 2013 - 10:42am
Gold Dog
Offline
-
Chicago, IL
Joined: Jun 15, 2011
1153
6762

@Gwyde

Thanks for the input. Alas, they were filled at the open and I have been at the gym so I didn't catch it in time.

They all still have plenty of dry powder so I will run the others this afternoon/evening and share my thoughts.

I did look hard at Barrick five or so years ago and did not like that they had hedged out so far. In hindsite that was quite lucky due to their problems along the border....I think they may go belly-up!

Once again,

Thanks,

Dog

EDIT- I hear you on the dollar cost, I treat each trade as a discreet event. I am just more familiar with NEM right now, and love the yield...their dividend is based on earnings so it really is a play on an AU rally.(This begs the question of why are they trading at a 5%+ ?). In addition to your choices I will look at the Sprott Funds, they list their top ten holdings in each and that may provide a lead or two.

"Gold will be master or slave."- Horace

Notice: If you do not see your new comment immediately, do not be alarmed. We are currently refreshing new comments approximately every 2 minutes to better manage performance while working on other issues. Thank you for your patience.

randomness