RE: What a fraudMy view is that it is over valued and I support my position with a list of valid fundamental reasons that could one day play out that you could look at this stock and see that it had dropped 20-30% on opening, and then just piddle away for how ever long it takes to correct.
This stock is where it is because of market sentiment that has lost touch with fundamentals, and there is always eventually a correction when that happens, and sometimes it is very harsh. And market sentiment changes on a dime.
My earlier blog details many of the reasons that earnings will go down. There is no doubt in my mind that Wall Street is currently using RRSP season to unload the last of their holdings, and the minute the earnings miss guidance, they can all safely down grade.
The one reason that I never got around to posting on my blogs is about the increased shares from Glamis. They had 167 million shares that earned 11c/share Q3. Goldcorp had 421 million shares that earned 14c/share for Q3. Those earnings must be restated over 702 million shares. It averages down the earning to 11c per share, or a 21% decline in earnings per share.
Major concerns:
1) all costs dramatically up
2) rate of depletion of reserves up
3) leverage of earnings down (leverage is a double edged sword, when things are in your favor, it makes them more favorable, when things are against you, it takes back at a higher rate)
4) price of copper way down (responsible for 60% of 9 month earnings prior to merger)
5) in a squeeze to pay juniors what they want in order to replace reserves
So, I've been labled a basher, but to me it is just plain ethics that if you see something that can really hurt another person and you can prevent it, you point it out.
https://www.stockhouse.com/blogs.asp?page=viewblog&blogid=459