Hi marcos,
Well, disregarding Msr. Charters' opinions <g> for the moment, fundamentally speaking, Bombardier looks very attractive in an otherwise moribund global market... Debt is a little high, and that's always a concern during hard times, but it looks like they're diversified enough, and have sufficient cash flow to ride out the tough period, and emerge somewhat triumphant... Additionally, the stock's price was hammered very hard by investors, and it doesn't look much worse than "dead money" for the foreseeable future. In other words, the upside potential (albeit it unknown when) far outweighs any more downside concerns, at least from the perspective of fundamental analysis. I'd speculate in this issue, if it were on a US exchange. Not bet the farm, mind you, but a small speculative wager that I think I could win... We'll see though, as I've marked it for future reference...
You're right on Silver Standard Resources. That's the highly promoted issue out of Vancouver in which my friend took an interest. I still can't get him to understand that if someone is promoting it, how good can it be? If it's as good as they say it is, then why pay big bucks to promote it? Profitable results should be promotion enough... But he's a dunderhead sometimes... Even after I pointed out the risks, and the fact that silver in the ground is not the same as silver in the bank, and I pointed out the costs involved in getting the ore to market, etcetera, and the fact that the stock trades on the Canadian Exchange (and the exchange's reputation), blah... He'll end up buying, just watch and see. He's one of those people that sees the silver lining in every stock, disregarding any risks... <g>
I think you're right about the juniors recovering somewhat... Price of gold is rising, forecasted as high as 20% to 30% further gains... I'm not into precious metals or mining companies, but one cannot ignore the short term successes of that market segment recently. And of course, the rise in the price of gold is as good an indicator as any of the prevailing attitudes on stocks right now. If people are willing to buy gold, someone must be seeing a rather dismal future for stocks, at least for the next year or so I'd guess. Again, we'll take a wait and see attitude. I haven't bought anything in almost two years now. Nothing really jumping up and shouting "Buy me!" right now.
Have a good day tomorrow...
Kerry |
