GREY:GRFJF - Post by User
Post by
cjsellon May 06, 2008 8:19pm
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Post# 15044616
WGI is NOT the place to be..right now
WGI is NOT the place to be..right nowThe way I see it is, unless gold goes to $500 oz OR $2000 oz WGI is a poor choice if you are looking for a gold producer.
WGI will continue to get POUNDED due to two facts: (not a table pounding buy, a table pounding run away)
1) They have hedged a significant gold position at $800 oz
2) They are basically an open pit operation, huge exposure to energy costs, especially oil prices.
I would certainly discount ANYTHING Alex Russ or Hugh Cleland have to say concerning ANY investment decision, do your own research. Those two "table pounders" high light only positive READ speculative information, little more than public relations. If you want a roller coster, follow those two. Just look at the technicals those two gentlemen are trying to hype.
If you feel compelled to buy WGI wait until it gets WAY down, then scoop some up for trading. This is NOT a long term hold under the present conditions.
If you want a mid tier producer look at Eldorado, or why not Gold Corp, Barrick, Kinross. Those are very liquid stocks that will rocket (both ways!) but since they have been so roughed up, they will look really cheap a couple of months from now.
1) is unhedged
2) is making money
3) is reasonably safe (not Ecuador)
4) has good reserves
5) has great management
Cheers!