GREY:GRFJF - Post by User
Comment by
Orwellon Aug 25, 2008 9:39pm
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Post# 15409147
RE: Gold's going to $2000 in a year!
RE: Gold's going to $2000 in a year!Gold's not going to 2000 for a long while out, but WGI is still undervalued.
One big thing to keep in mind--it operates in the U.S., so when U.S. dollar goes up, it reduces expenses for WGI.
As long as gold is reasonably priced at $700+, then WGI will eventually reach its fair value.
The downside risk of WGI is extremely low currently unless gold plummets.
WGI has a great risk reward equation currently, volume and action looks good today.
WGI remains my top pick, but I'm keeping an eye on Eldorado also.
ELD is a good example that any stock can maintain its value if it is in favour with the market, WGI just needs more awareness to do the same thing.
Perhaps the market is just waiting for WGI to have reasonably large quarter to quarter positive cash flows--the next two quarters should demonstrate that.
O.