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Hi Jim,
this is interesting choice this week. Call me stupid, but I do
not like it. From the sector point of view
HM is in Precious Metals sector, which stinks. This is the last sector I
would like to put my money in. Also some more factors:
1.Excess supply of gold,
2.Central Banks are selling like crazy,
3.When you would like to hedge on inflation or political instability (Asia)
you buy inflation indexed bonds.
About p.3 even knows NBR's Paul Kangas, he told that guy who recomended
buying some golds stock, which were down as much as 50 % . (Last friday)
Now things are more interesting. This guy is saying that Canadian Dollar is
going down because, Canada sold all their gold, but he does not know why. I
do not know either. Is there a currency trader, who knows why the Canadian
Dollar sinks? I suspect budget or trade deficit ?????????.
Now back to gold sector: Barrick, HM, and Newmount there are only 3
companies were you could put money, but not now, I would say March/ April,
and from the fundamental point of vu I like Newmount, they also pay
dividends.
I am giving HOLD to that pick.
Now RDC, has better fundamentals, but sector was downgraded few weeks ago,
it will be underperformer (sector) for 3-5 months.
I know what you are saying that RDC has deepwater drilling rigs, and the
others ....
Please note who needs the oil and... rigs when:
1. spring is coming soon,
2. Bill let the Sadam export oil, again excess of supply,
3. and ...oil is going down.
I am giving HOLD to that pick.
Hey Jim, you can do better than that.
Cheers,
Pi=3.14
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