RE:RE:Eldorado EPS beats by $0.01, misses on revenueThis is really great for ELD because now the surprises are over, the earnings are out and its not that bad, the gold price will not stay low with inflation due to QE, interest rate hikes usually dont correlate with gold historically so this new breed of algo investors that dont program that in their software - the medium term effects are higher prices due to gigantic money floating around real estate and stocks. Reversion to value, profit, will happen, give it a few weeks.Eld is still making lots of money. the price right now is below the low range of predicted stock price with all analysts. All yes all analysts, check the TD analyst column.
The low volume during these past 2 days encourage the shorts because there is just no volume to support. Just wait for a big guy to start buying.
Shorts believe gold goes up with low interest rates, but it is the contrary the tendency.they wrongly assume that money in gold moves to bonds, but that is not what is happening with innumerable orders of ELD for 1000 shares here , 500 shares there, that is not money moving into bonds, but small traders money. Momentum traders eventually stop when momentum stops.From a probability point of view there is going to be a pretty high probability of gold having a few plus days in the coming 5 days, ELD is just getting the strap for writing off .15 of earnings which at a PE of 8 should just be worth 1.20, but we are down over $3 in 2 days.
No worries. No worries.