Goldcorp, Inc. (USA) (GG)

GoldCorp is one of my least favorite gold miners. They are mis-managed, in my opinion. Even though their purchase of Glamis Gold represents fair value at today's gold prices, it didn't sound too favorable at the time. As a former Glamis shareholder, I would much rather still be holding that stock. GoldCorp is one of several gold behemoths that I am reducing my position in at this stage in the commodities bull market. They may very well continue to see solid returns, but I am switching my focus to the mid-tier and junior miners, which I think will outperform the behemoths in 2008 and beyond. As I mentioned with respect to Newmont... if several of my smaller companies end up getting purchased by the GGs and the NEMs of the world, then so be it... but I think I'll do better owning the small-fries. :) I am keeping GG in my CAPS portfolio for the time being, in part because it keeps me watching it more closely... but in real life I no longer own any shares of this one.

P/E = 129.6x v.17.7x for S&P 500

Price/Sales = 14.3x v 1.5x

Price/Cash Flow = 42.3x v 11.6

Profit Margin = 12.8% v 7.8%

Return on Equity = 2.1% v 15.6%

Return on Assets = 1.5% v 3.0%

Long Term Growth Rate = 68.3% v 13.0%

PEG Ratio = 1.9x v 1.4x

Gee... The input data for Goldcorp has finally been corrected and what happened... A P/E that falsely read about 20 now reads a more accurate 66, and the market cap is now reading far closer to the truth, but it is really more like $17 billion, not $16 billion when the share price is $23. Goldcorp prints equity faster than the federal reserve prints dollars, so it is hard to keep up...

wave 5 down in gold is coming... the stocks will be crushed, particularly this dog.

Enormous U.S. budget deficit. Enormous U.S. trade deficit. No end in sight to either one. U.S. economy that is potentially stalling, preventing the Federal Reserve from raising rates. All of these things lead to a weak U.S. dollar. Unless one or more foreign currencies emerge that offer a competitive combination of safety and returns, then why won't gold appreciate vs. the U.S. dollar?

Goldcorp (GG) is a fairly low-cost gold mining company (although not as low cost in comparison to Newmont and others as GG and analysts would have you believe) and its reserves are generally in "safe" countries, which is favorable. GG also pays a tiny monthly dividend, which is pleasant.

The only thing this CEO cares about is digging for gold.. Unfortunately its the kind of gold that is only found in his nose. GET OUT NOW!

US debt, dollar decline, low cost gold producer.

This pick is one of a collection of UltraShorts and 3X Bear ETFs that are all due for a short but (hopefully) profitable rebound (10%?). In looking at a combination of the Slow Stochastics, the Volatility Index ($VIX) and the Daily Sentiment Index (DSI, courtesy of GoodVibe's blog posts) for this pick and others, I think we'll see a local minima established for this pick this week or next.

To me, it's clear from the Slow Stochastics of some big ETFs that they are due for a turn-around. Take a look at ERY, BGZ, SFK, and SJF, to name a few. All are above the 80% "overbought" line, some above the 90% line, meaning they are more likely to fall, and soon. The "Williams%R" indicator, which leads the Slow Stochs by a few days, is showing even greater "overbought" tendencies, and in some cases is starting to head back down. In general, this is good news for a market shocked by dropping below the 7000 psychological mark. And if investing for the masses is anything, it's psychological. So, I think we'll see a rally starting this week and pushing into next week. But I don't expect it to last long -- maybe to St. Patty's Day if we're lucky, perhaps a little longer.

Finally, let me be absolutely clear: I still believe we are definitely NOT at THE bottom, but only at a local minima. We have at least another 20% to fall:
http://caps.fool.com/Blogs/ViewPost.aspx?bpid=137397&t=01009471911616523983

If you do not have time to watch your purchases over the next 2-3 weeks, don't play the game. I have a feeling it's going to be very volatile. Good luck!

Goldcorp isn't a pure gold company anymore. Through their acquisitions they also mine silver and copper. So what? Only goldbugs will cry because all metals are in a long term bull market. IMO

With the closure of the Glamis Gold deal, there's no one who has better reserves or a lower production cost. Good news is that this company performance also tracks the price of gold; bad news is that it tracks the price of gold. Sometimes hard to tell if it's company performance or factors driving gold price that matter the most. Maybe it doesn't matter; gold price is going to keep rising over the next couple of years.

This is a great stock to own for exposure to gold. Gold has gone from $300 / oz to over $600 / oz. in just a few short years. However, this is just the beginning. Excessive FED credit is leading to hyperinflation, so people will dump dollars (a worthless fiat currency) and move to protect their money buy buying gold. GG can produce gold at approximately $300 per ounce, and sell it at market rates (over $640/oz.!!). Is this a great business or what? China is planning to use its 1 trillion dollar cash reserves to buy gold, as a hedge against the falling US dollar. This alone will propel gold to $1,800.00 per ounce within three years. Want to own a 10-bagger that will get there in 5 years or less? Back up the truck and buy GG, the world's best gold producer! (yes, I do own the stock, and yes, I will be buying more !!!)

Gold is at record high prices. There are many reasons for this, but the foremost is that the dollar is going down the tubes because the Fed has been running the printing presses at full speed for quite some time.

With the recent half point cut, the Fed signaled that they are going to inflate American's into feeling good about their overpriced houses--the McMansion will still be worth $500,000, but the 500,000 dollars won't be the same as they used to be. The paper dollars will be worth less than today, and gold will be worth a lot more than $720/ounce. All the big gold miners will win.

Long-term upside potential.

Gold will hit 1250 in 2009 and miner companies will follow suit.

Gold is as high as it will go. 1) The US dollar will not decline much further. The decline to this point has sown the seeds for its rebound. 2) As David Hume said, gold's value is mostly fictitious.

Would be closer to fair value at 2.56 than 25.60.

Time Frame needs another option: "Forever!" GMX calls underperform on this Forever!

This company just mints money. It is a cash making machine with the current price of gold.

Gold's price should increase due to a declining dollar. Most of the major stocks will soon go down, especially with the baby boomers starting to retire shortly, allowing the miners to beat the S&P 500.

All of the the precious metal stocks should do good for the near future... there will continue to be shortages of these metals as the world develops in third world contries and the Pacific Rim. I like Gold Corp for several reasons. Lots of reserves, cheap per once cost to produce, not hedged, and looking to grow their stake in the sector.