Rydex and sentiment looks at or close to capitulation levels. All the funds built up since the Sept-Oct, 2003 top are gone.
idorfman.com
COTS only suggest a POG correction to me, not a massacre. Gold is a fairly stable commodity.
I really doubt if folks here are looking for more ideas, but I picked up my first half in DEZ at 1.25 late last week.
Comment on the Cannacraps, dilution, poor shareholder placement, etc. Most, if not all the better (and marginal)juniors raised money from the now departed Cannacrap (Cannacord, Canada's worst paper pushing broker) cannon fodder crowd at much higher prices. If you look at the financials one can see the outstanding warrants and options are often at 100-200% higher prices than currently, and many are expiring. That's no longer dilutive (unless they make the mistake of raising money here, which I'm not really seeing), when one looks at enterprise value (substracts working capital). In otherwords, when one does the new EV after the prices have been halved, the value of the often improved deposits has shrunk to levels that can only called nominal. This sector desparately needs an industry generated munch to demostrate this. If the industry won't do it, then a T Boone Pickens type (takes a controlling position of 10-20%) should do it. That's the catalyst (surprise) that will revigorate these stocks. One should look case by case, but perhaps I can illustrate some when I get back. |
