RE:RE:Forced SellingBuccaneerIsland wrote: Consvestor wrote:
This is all a result of forced selling by margin players. Unbelievable bargain at these prices! Hopefully the company is buying their own shares hand over fist. Does anyone actually believe that gold is going sub 1250 anytime soon? That is where it would have to go to put KL at this level.
Er...?... yes. A 25% haircut like in 2008 would put it at $1245 or less.
Bucc
25% from its recent high of 1700 would put it at 1275..... so yeah, perhaps the market is pricing in a correction of that magnitude. However, such a drop would likely actually be good for a company like KL. With their cash on hand, and tremendous cash flow, they are well placed to scoop some smaller companies up on the cheap.
Still, I am really hoping that we do not go there. I am taking some comfort from the fact that gold actually bounced off the 1508 level pretty good on Friday. Fingers (and toes) crossed for Monday.