Looking for advice on my gold short ANV
I have short positions in ANV (short at $5.04 and $7.58)
It's been steadily rising over the last year without any signs of slowing down. Fundamentally, I think gold is overbought and is due for a correction over the next 2-3 years. However, even if gold remains at today's prices, is ANV still a good investment? It's at 230x P/E, a 9x current ratio, and a horrific 2008 to overcome where they booked -1.49 EPS for the year.
I understand that their Hycroft mine is producing at expected rates now, according to this quote from their recent earnings statement: For the first two months of 2010, the mine has produced approximately 15,300 ounces of gold and approximately 36,300 ounces of silver, indicating the mine has now achieved expected production rates.
Opinions? Should I bite the bullet and get out while I can? Or will we see a dip below $10 sometime in the future?