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Sunday, February 14, 2010
'Junior' gold miners seen as attractive: Barron's TNR.V, BVG.v, GRC.to, RVM.to, KTN.v, VTR.v, SGC.v, NGQ.to, GBN.v, BTT.v, FVI.to, MUN.to, ASM.v,
Posted by andre at 2:54 PM
US Dollar is still on Sell signal daily. It is the key to Gold market and to Juniors performance.
"US Dollar now definitely looks tired and made a Sell Signal. Scare about sovereign debts and Greece particularly helped to sell few more billions of IOU, now reality will be settling in: Sovereign Debt Crisis is here on American soil - California is broken as U.S. itself with Budget Deficit over 10% now, compare it to Europe 6%. Greece will be baled out. Who will bail out USA?"
Gold is at short term Buy signal and is building the base for reversal with a Double Bottom.
Canadian Juniors CDNX are on a short term Buy signal and cross over MA50 will confirm this move.
"Canadian Juniors will be the most exited public with all recent developments, interesting to note, that sector is building reversal which is more aggressive than USD and Gold pace of changing direction - we have a bullish candle and Free White Soldiers, bullish reversal will be confirmed with crossing MA50".
Reuters:
NEW YORK
Sun Feb 14, 2010 4:34pm EST
NEW YORK (Reuters) - With the gold price reaching record highs recently, stock in so-called "junior" miners has skyrocketed too but may still be viewed as a bargain by some investors, Barron's business newspaper said on Sunday.
But it also cautioned that estimated reserves may not always pan out and stocks that once appeared attractive, can sometimes disappoint.
It cited in particular, NovaGold Resources (NG.A) and Seabridge Gold (SA.A), whose valuations have risen ten-fold to about $1 billion each.
The report noted the increased valuations were directly related to the companies' increased estimates of the amount of gold in their reserves.
Barron's said since gold rose to over $1,200 an ounce, the shares of major gold producers, such as Newmont Mining (NEM.N), "went nowhere." But the shares of juniors -- small exploration companies that often have only one property -- had surged.
The newspaper said bulls view NovaGold and Seabridge as cheap at their respective prices of $6 and $25. That represents about $49 and $14 for each ounce of gold they claim to have underground.
"But NovaGold and Seabridge are bargains only if the gold estimates prove out," Barron's said. "The gold industry's recent decades have featured many disappointments in ore grade, tonnage and processing cost.
"At Seabridge and NovaGold. the track records of important technical experts, managers and controlling shareholders raise worries about whether the mines will meet expectations," it said.
Sun Feb 14, 2010 4:34pm EST
NEW YORK (Reuters) - With the gold price reaching record highs recently, stock in so-called "junior" miners has skyrocketed too but may still be viewed as a bargain by some investors, Barron's business newspaper said on Sunday.
But it also cautioned that estimated reserves may not always pan out and stocks that once appeared attractive, can sometimes disappoint.
It cited in particular, NovaGold Resources (NG.A) and Seabridge Gold (SA.A), whose valuations have risen ten-fold to about $1 billion each.
The report noted the increased valuations were directly related to the companies' increased estimates of the amount of gold in their reserves.
Barron's said since gold rose to over $1,200 an ounce, the shares of major gold producers, such as Newmont Mining (NEM.N), "went nowhere." But the shares of juniors -- small exploration companies that often have only one property -- had surged.
The newspaper said bulls view NovaGold and Seabridge as cheap at their respective prices of $6 and $25. That represents about $49 and $14 for each ounce of gold they claim to have underground.
"But NovaGold and Seabridge are bargains only if the gold estimates prove out," Barron's said. "The gold industry's recent decades have featured many disappointments in ore grade, tonnage and processing cost.
"At Seabridge and NovaGold. the track records of important technical experts, managers and controlling shareholders raise worries about whether the mines will meet expectations," it said.
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