RE:RE:RE:I'm Excited!theCurse wrote:
Well, it's tough sledding and whether it makes sense or not is irrelevant. It would seem the market is figuring on lower POG in the medium term - we'll see. I re-entered too early on half of what i own now - not fully but enough to not want to bite right now.
And it has had an anchor around it ever since the merger was announced (and lost an on-going 3-5 bucks to date) which is clear when compared to the gdxj.
tC
Too be fair, I think the price action has little to do with the merger, and everything to do with the consolidation period that is happening for Gold at teh moment. Pretty much every gold stock that I own is acting the same way.
In other words, the merger is neither a catayst nor an anchor for EDV at the moment. My gut tells me it will be a major catalyst, once the PoG retarts a new upward leg (more likely than down, but anything is possible I suppose in this crazy mixed up financial world).
Why a catalyst? EDV & TGZ need to re-rate against their peers - even pre-merger (using metrics like AISC, Price/Earnings, Price/Cash flow etc.) Then add in the merger synergies of $50M+ /year. Then add in the Brits buying on the LSX.
Frustrating, but EDV was stuck between $ 17 and $ 28 for 4 years. My guess is we are stuck $ 28 to $ 35, until gold decides to take another run at $ 2,100. Then we achieve the new plateau of say $ 45- $ 55. Or it's possible that if gold claws back to just $ 2000 or so, that the re-rating and LSX, pushes it to $ 40 by mid 2021.
MM