Post by
007YoungGun on Jan 09, 2009 1:35pm
analysts targets, hedges, and sp
Wellington West, which has been a financier for WGI in the past, has called for a $0.50 sp increase to $3.50. Haywood Securities has recently increased their sp target $0.30 cents to $2.80. These revised estimates are obviously positive.
With the highly volatile market fluctuations, i think the forward hedges in gold and oil prices are prudent to stabilizing operating costs, and we will see down the road if these hedges are fruitful. Therefore, I find it difficult to estimate a sp and believe that quarterly results will bear the weight on the direction of this stock. Since WGI is in a politically safe area and well financed, and has conservative hedges to cover operational costs, the only major risk here is operational execution.
Looking at it from a capital preservation viewpoint, I can't see WGI losing much ground on its sp and it has a great opportunity to capitalize in this unpredictable financial environment, where gold is the flight to safety.