Posts Tagged ‘junior gold miners’
In 2012, small-cap stocks were the second-best performing group, following the technology sector. The Russell 2000 was the top performer in December and has been since the end of the first quarter. How the small-caps fare this year will, again, depend on the global economy.
My stock analysis is that what happens in January will be an important indicator for the year as far as performance. Historical records indicate that stocks have increased an average of 1.6% in January since 1969, according to the Stock Trader’s Almanac. In 2012, January was a strong month, so it was not a surprise to see the relatively good advance in stocks.
As we move into 2013, the focus will be on any remaining fiscal cliff fallout and the impact of the deal, along with the eurozone mess, the U.S. national debt, and jobs growth.
For 2013, my stock analysis is cautious to start the year, based on the high global risk.
The fact that the economy is triggering some jobs growth is encouraging. My analysis is that this will likely continue in 2013, although the unemployment rate is expected to remain relatively high at over seven percent.
My stock analysis tells me that we need to see leadership from such areas as the financial and technology sectors. The big banks were strong in 2012, but we also need to see technology take a leadership role.
It definitely will be a tricky year, given the global and domestic issues, along with suspect earnings and revenue growth to start the first quarter, which you can read … Read More
Gold has shown some good support and buying after recently declining below $1,550. The June gold remains extremely bearish on the charts and is searching for oversold buying support at around $1,500 to $1,525. So far we are seeing support emerge on weakness.
I continue to like gold going forward given the possible exit of Greece from the eurozone after the failure to form a coalition government. New elections are set for June 17, but the uncertainty will be an overhang on equities. A number of Spanish banks were also downgraded, as the 10-year bond yield surged towards seven percent, which inevitably is not sustainable for the country given the current weak financial position.
As I discussed in recent commentary, I do not feel it is time to dump gold stocks and I believe that major price weakness should be viewed as an opportunity to accumulate stocks.
I favor the metal plays and continue to smell opportunities, especially in the mining companies and junior gold miners.
China and India continue to be the world’s top buyers of gold and this is expected to continue. The Chinese have also been buying mining companies around the world in an effort to increase its reserves. This is a reason why I like some of the smaller mining companies, especially those with a massive reserve of proven metals in the ground waiting to be developed and needing a cash-rich partner to get the ore out of the ground.
You can consider buying the major gold players such as Freeport-McMoRan Copper & Gold Inc. (NYSE/FCX), Barrick Gold Corporation (NYSE/ABX), and Newmont Mining Corporation (NYSE/NEM), as … Read More
In 2011, small-cap stocks lagged blue-chips and large-cap stocks following a strong 2010. In my market view, the big difference in 2011 was the uneasiness of the economic renewal in the U.S. and global economies. And, despite a positive January 2011, stocks largely fell last year.
The general market view is that what happens in January is an important indicator for the year as far as performance goes. Historical records indicate that stocks have increased an average of 1.6% in January since 1969, according to Stock Trader’s Almanac.
I was off last year as far as my forecast and market view, as I underestimated the weakness of the eurozone debt and the inability of domestic jobs and housing market to turn around.
For 2012, my market view is cautious to start the year based on the high global risk.
The fact that the economy is expanding in spite of a lack of strong jobs growth is encouraging. We are seeing what economists call a “jobless recovery.” And my market view is that this will likely continue in 2012, as the unemployment rate is expected to remain high at over eight percent, despite the extended tax cuts to drive consumer spending and economic renewal.
This is also an election year, so there will be haggling as far as policies go, as both parties are aiming to set themselves up for the election. As such, many pundits are expecting to see political gridlock to start the year and this will likely impact President Obama.
My market view is that we need to see leadership from such areas … Read More
In its fourth quarter of 2010, the company’s total sales were $26.2 million, representing substantial growth of 53% over revenues of $17.1 million generated in the same quarter of the previous year. That’s way better than a technology stock. Earnings for the fourth quarter of 2010 were $4.6 million, or $0.15 per share, compared to breakeven net income of $0.1 million, or $0.00 per share, generated in the fourth quarter of 2009. For all of 2010, the company’s revenues were $90.8 million, compared to $71.9 million in 2009. Earnings for the year were $9.0 million, or $0.31 per share, compared to $0.3 million, or $0.01 per share, in 2009.
In the last few trading sessions, gold has been steadily assaulting the $1,300-an-ounce resistance level. It appears that very few traders doubt it will hit that new high in the near term, considering the recent high on the spot market of $1,278.90 per ounce of gold. Of course, whenever gold rallies this strongly, the inevitable question on investors’ lips is: how much upside momentum is still left in the bullion and, more importantly, how could they make the best of it while the gold is still surging?
Gold bugs believe that there is plenty of upside momentum left and they are framing it in terms of years, not months. Their reasoning appears sound — there are so many factors driving the price of gold upward, such as volatile currency markets, über-sized government deficits, more economic stimulus potentially creating an inflationary wave, and the still weak global economy. Neither of these factors is likely to back down anytime soon and thus neither is the price of gold.
The good news this time is that not only gold bugs are preaching to the choir. It seems that quite a few respected gold analysts also believe gold is truly in a long-term bull market. Additionally, gold fundamentals support the argument that gold is not likely going to morph into an asset bubble.
As far as future gold price predictions go, some gold analysts are rooting for the gold price of $2,300. Why this price of $2,300 per ounce? Simply, the price of $2,300 per ounce of gold approximates the price that gold had reached in January 1980 after inflation is taken into the … Read More
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