Loading ...NGD slammed down hard low risk buying opportunity?
Anyone long New Gold (like me) is aware that the stock was slammed down hard recently losing around 35% OVER 2 DAYS! This was because the projected cost to put the mine in production were much higher that projected. Still this one of the few juniors that could go into production. From a contrarian point of view the stock represents a low risk entry here.
Well, a few “mining experts” visit this board and can hopefully give you some advice. From a trader’s perspective, this is a “falling knife”, I would wait for a turn IF the fundamental thesis exists. I realize individual small miners can represent amazing value and potential profits, but as in this case, kaboom! Besides the ETFs, my main two trading stocks are RIC and MUX–approved by the board!
I find a search of IKN when you’re doing DD on a company frequently pays off:
“New Gold Downgraded to B from B+ on Weaker Liquidity; Outlook Negative: S&P Global Ratings lowered its long-term corporate credit and senior unsecured debt ratings on New Gold to B from B+ …”
http://incakolanews.blogspot.ca/2017/02/even-more-new-gold-ngd-s-downgrades-its.html
I think somwhow they will fill the liquidity gap. maybe a share offering. I do not think they will allow this project to go down the tubes.
I agree. I don’t think it’s dead, but a definite financing problem.