Richmont Mines, Inc. (USA) (NYSEMKT:RIC)

CAPS Rating: 3 out of 5

The Company is engaged in the acquisition, exploration, operation, financing, and development of mineral properties.

Recs

0
Player Avatar Timoteo57 (< 20) Submitted: 10/2/2011 11:41:35 PM : Outperform Start Price: $9.67 RIC Score: -11.39

Fundamentally sound company with a low price in a lucrative, consistently high performing sector (gld/slvr). Little debt with earnings growth consistently beating or meeting analyst estimates. Very little widely publicized negative information that I am aware of and most consider this stock a winner and so far YTD, it has been behaving accordingly. The stock is somewhat volatile of late for intraday trading, so care should be exercised regarding tight stop orders, given the low stock price and wide swings that don't reflect the open/close at times. It also trades at a fairly low daily volume of around 300K, which some might consider a negative. Looking at various option strategies to generate revenue and hedge against short term downturns. Long term outlook is very positive.

Member Avatar Timoteo57 (< 20) Submitted: 10/5/2011 12:04:37 AM
Recs: 0

I have to add that today after holding this company for slightly more than a week, my stop loss was triggered at 10 and I no longer own shares. I am tempted to dive back in, as they really got hammered down to a low of 7+ today (10/4/11). I need to review the tax implications of that because I know there are some guidelines or restrictions about selling and re-buying. Something about how your gains are amplified and losses not accounted for to their true levels. If anyone stumbles across this and know, I'd appreciate it if you could briefly explain it.
As for R'IC, it is one of the most fundamentally sound companies on paper in a business sector that is one of the top performing for some time. It just got sucked in by the general market panic and I find the small and med cap stocks take longer to recover. Also, some analyst from Canada that I had never heard of downgraded the stock to the equivalent of "hold". Now that is a FOOL who is feeling very smug today I am sure...

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