Harrisment, IAG trades below book value....read this piece in forbes, its a steal at today's price. IAG Yields 5.40% and Trades Below Book Value
IAG's short interest went up 50%. Everything looks good about the stock, but why would short interest jump so high?
bc shorts are always trying to be the smart person in the room ask robbie about that. I called a buy on HIMX at $5.77 it got up to $8.50 in a week and robbie shorted somewhere in there and he was wrong and it went up to $11.45 in another 3 weeks..........You would be suicidal to short a stock that's trading for 1/4 of what it was in december and pays a 5.4% dividend. There isn't much downside because as a streamer IAG mines gold and sells it, their mines have 12-14 years left and they're one of very few miners with a niobium mine which is a realllly big deal. There's a reason it was $22 a few years ago, nothing has changed just stocks are roaring so people left metals to follow the QE and rising stocks. gold is a wingnut investment according to some, i don't see it as an investment but rather a store of wealth, but gold is way off this year its time to buy bc any sort of prolonged shutdown or actualy default or fear from obamacare,unemployment,war etc will send gold soaring again. Gold was $1600 in jan, at $1300 today it's a good buy almost 33% off the all time highs. In 1998 gold was $285/oz has anything else you owned gone up 450% in value since then? IAG is selling below book value that is a steal!!! That article is from forbes not some goldbug site.....and it was written today
Pete you made a wise decision, it was $6.88 within the last 45 days, even a rise to that level is a 35% jump. I have no faith in our debt ever decreasing and as we pile on more debt we lead to more and more possibility of inflation. It's not that gold is rising in value as much as your dollar is losing value. IAG has serious potential to double or triple from here....
http://finance.yahoo.com/news/more-dividend-cuts-likely-gold-163047092.html eddie have you heard of dividend withholding taxes? Also, if you get really excited about stocks below book value then here is a list of currently profitable companies that are projected to be profitable that are currently below book. http://finviz.com/screener.ashx?v=1...a_pb_low,fa_pe_profitable,ind_stocksonly&ft=4 Further, I wouldn't care too terribly much about the company's book value. http://www.sec.gov/Archives/edgar/data/1203464/000119312513331990/d583526dex993.htm Simply put most of their assets are depreciating in value. The company is not valued based on it's book value. It is valued based on earnings potential and gold prices. Here's a decent write up http://seekingalpha.com/article/170...lden-if-gold-prices-spike-higher?source=yahoo All that said it isn't the worst time to take a stab at IAG if you believe gold prices are moving higher. However, I don't see a reason to fight the downtrend with gold right now. The dollar is on the low end of its range right now and gold isn't bouncing. Granted, the dollar and gold don't really correlate very strongly, but it's just something to note. I feel like gold should be able to move higher right now, but it simply isn't. You have to respect what the market is showing. It could turn around. I guess we will wait and see.
Gold is up 400% the last 15 years who cares about short term manipulation. I'd rather buy low(gold) than buy high(stocks). Our debt is getting out of hand and gold is more insurance than investment. We seem to have a new catastrophe every other month:fiscal cliff,sequester,Syria war,debt ceiling,government shutdown,obamacare all in last 12 months. Truth be told the US is like a fighter on its last leg doing all it can via qe to prop up a garbage economy with terrible employment data and it's not even working looking at unemployment and GDP data. Throughout history every great nation has fallen and we are no different, gold has survived the fall of Babylon,Rome,greece and will survive our downfall. Detroit defaulted this year wait till Chicago or one of the big towns in California does, the us is a house of cards look how stocks plummet at the mere word "taper". I'm sorry I see no end to qe when tellem takes over which will be a boost to all metals.
Robbie if you dug into IAG a little more you would see their Niobium mine which has nothing to do with gold and is about 7% of the worlds niobium production can easily cover the dividend, so there will be no dividend cut. Niobium is a rapidly growing mineral in the auto industry,housing, etc bc of its ability to strengthen steel. As for gold,I don't think you get it......look at any chart as our debt rises so has the price of gold historically. This 33% sell off from the top was just weak hands being shaken out, only a fool would sell gold for cash at this point with the debt we're racking up. Also possible is people sold metals to get into the market as it was roaring since the intro of QE Im sorry we're 17 TRILLION in debt and we want to raise the limit to issue more debt, currently we add $3 billion per day to our debt. The end game is going to be ugly for america, even with all this QE we can barely grow at 2% annually. In the end we are deflating our dollar to pay back our debt with worthless money. I promise you over the course of time nothing has been a better investment than gold, what is ancient egyptian currency,greek currency worth in relation to gold today? Gold has survived forever while many currencies have come and gone. Today is the day to be buying gold when everyone else is supposedly selling. If we default in 2 weeks awesome gold rises on a weaker dollar and fear alone, if we raise debt ceiling, great we issue more debt thus gold will rise. The bottom line is the only thing that could hurt gold is tapering and thats why its been down all year, the fear of tapering but that is just fear, we haven't been able to taper even though we've talked about it all year....why? bc the markets would tank and frankly the US economy is barely surviving with QE, god help us without it.Janet yellen is the next chairman of the fed and she is going to up the printing, that's why the market rose on the news of larry summers dropping out last month. The question is does QE always work for a long time? I don't think so, look at the chart of japan and the Nikkei over the last 25 years..... sept 17th see gold rose 4% right after we announced there was no tapering, so gold loves the QE and this infinite QE is going to send gold higher and higher.....the US has its hands tied there is no way out, if there was don't you think we would have utilized it by now? All we do is talk. Everything, all these catastrophes we mention are just talk and the taper talk is nothing but talk
Eddie you've convinced me. I just sold everything and bought gold. Btw I was serious when I asked you before about the Dodd Frank compliance and ADA compliance with your ATMs. Have you had any problems with that?
I don't know the details of the bill but I do know I had to buy an upgrade for all my machines so handicap people could plug in headphones within the last 2 years. They also installed braille stickers on my machines.....otherwise I've had no issues whatsoever with my machines.
Still in all my FB. Gonna cover today. Got a really tight stop on it now....and I'm out as we speak. I'm glad I slept in or else I probably would have covered some lol.
btw eddie that IAG was interesting reading up on. the niobium mine seems to be pretty stable. however, IAG being a high cost gold producer is worrisome, but they do have some cushion with the excessive div and relatively low leverage ratios. all this makes me want to short ABX. that thing looks like ****.
