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goldminingXpert (29.49)

Shorting The Phone Book

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April 16, 2008 – Comments (4) | RELATED TICKERS: GE , GG , MNST.DL2

of tickers that is. I'm throwing around red thumbs like crazy tonight. If America's index fund (GE) is suffering to the tune of 10%, you can be sure that the marginal names of the market are in deep deep trouble. Look no further than a Monster Worldwide, a company which will have no demand for it's services when the depression hits. MNST is only down 50% recently... it should retest it's old low of $8--a full $14 down from here. The events of the past few weeks clearly show that there is A) No bottom in sight and B) No company, even stodgy old GE, is safe. With all that said, get your red thumbs out and underperform any and all companies with weak balance sheets.

Also of note, I threw out quite a few bearish calls on gold miners this evening. I love gold, I love mining, I love everything about the sector, but dogs like Goldcorp and Barrick aren't making any cash out of their gold. The trauma-inducing spike in oil is making mining too expensive to cash in on high gold prices. As it is, the chronically useless GG management (ever since Mcewan left) is doomed to running GG into the ground. I like Novagold, Jaguar, and Northgate, but in general, avoid even the miners here.

4 Comments – Post Your Own

#1) On April 16, 2008 at 11:37 AM, madcowmonkey (< 20) wrote:

What? Avoid the miners? Oil is killing everything right now. No bottom insight? Man I am getting depressed with the miners outlook. I am with you on the red thumb, but I am bored of putting the stink eye on the companies and holding it there. Energy costs are hurting worse than people planned and I wonder how much they accounted for when looking at future returns. I am getting sick and tired of being sick and tired. I thought this summer was suppose to be better for the miners?

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#2) On April 17, 2008 at 6:17 AM, camistocks (< 20) wrote:

I like the miners, especially Goldcorp.

Since Rob McEwen left in anger the stock has gained, while his new endeavor has only cost shareholder's money...

 

 

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#3) On April 17, 2008 at 2:49 PM, Tastylunch (29.25) wrote:

Goldminingxpert

what's your take on the juniors like GSS? bearish on them too? just curious

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#4) On April 18, 2008 at 1:50 AM, goldminingXpert (29.49) wrote:

juniors are better--mostly cause they don't produce any/much gold so they aren't facing ramping costs from oil to the extent that the majors are. The environment is great for little companies to be bought out. I have to admit I don't know much about GSS, so I'll pass on that one. I do really like and own real-life shares in RBY and NXG (RBY is exploration and NXG is a (until recently) one-mine company. Sure, if you want to play gold equities, go with the juniors.

Camistocks: You're going to see goldcorp crash at some point, wait and see. Now US gold, um, well, that one has kind of sucked royally. No apologizing for Rob there. Watch Rubicon though... Rob is a big owner there and they just hit some high grades last week.

 

Disclosure:

I own 1500 shares of RBY, 300 of JAG, and 1000 of NXG. Why the small position sizes? I've got no conviction to throw more than pocket change at miners right now. I'm not short anything in gold, but looking at some GG puts.

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