Selling pressureThe pressure that brought the stock to $2.20, before kinross brought $2.35/share in cash to the table, was coincident with de-indexing from TSE. Index funds had to sell by last friday. Now, the dividend was cut, even though there's another $150M in the pot to cover obligations the banks no longer finance. Looks like there will be selling pressure from dividend funds until the end of the month, when they have to disclose their holdings. Then there is the optics of tiffany's quarter,, "earnings down 75%!!!" lots of fear about HW's quarter.... pressure on pressure on pressure.
looks like the time to buy.
why? Management has lots of high priced options that they won't be able to reprice. Insider buying window opens when the quarter is released. Force the index funds out of their shares, force the dividned funds out of theirs..... management can buy in cheap the options that are all expiring worthless. Read tiffany's closely,,, the bulk of the 'loss' is on one time charges.... great investments like tahera, polishing plant in the middle of the arctic, and early retirement for buyouts.... the core business is still good. HW mine debt is no longer an issue, HW salon debt is covered by a wide margin with valuable inventory. Tiffany is trading at 10x earnings because they don't have debt issues. HW is trading at .7x earnings because.... why????
five more days to back the truck up