Loading ...Newmont Opportunity
The recent gold takedown started the setup for another great entry point for Newmont (NEM) but I wondered what was going to propel the stock down enough to fill that last gap below 48. Thanks to their offer to buy Newcrest, the gap is now filled. Just as my suggestion over a week ago to use the opportunity of Intel’s terrible earnings report and the selloff it provided to pick up INTC at 27, this chance to buy NEM down here is just such another great opportunity. The stock will be at 60 in the next 3-4 months. 
Thats a bold prediction…BUT…there is NO evidence of that in the Chart CM
Looks like it’s very bearish
Fundamentals is one thing …BUT the Chart sucks IMO
On the contrary the chart is positive. I am not talking about a very short term trade. Whenever a company announces a takeover of another public company you always get arbitrage where the acquirer gets sold and sold short and the target gets bought. Of course NEM and all the rest of the miners sold off last week with the gold and silver correction and because of the takeover bid arbitrage it won’t jump back up in the very near term. Gold has mostly finished correcting(could be up to $50 more downside) but then it will recover all of the losses and challenge $2000 and above. That is why the 3-4 month time horizon. The overbought situation on the chart is soon to become oversold. Just as I loved NEM last year in the last four months of the year, I love it here after the arbitrage pressure dissipates.
Agree to disagree. The Fundamentals you cite are your opinion…thats great BUT the Chart Sucks
Nothing in the chart you are showing says Bull Market
here is what I see…probably the worst looking chart in the whole PM sector
https://schrts.co/JPgrXzVn
Fundamentals are facts not opinion. Yes, one’s interpretation of how the market will respond to those facts, is a matter of opinion. You are correct in taking a today snapshot and saying the chart looks bad. However, every good chart started from a bottom that looked bad at it’s nadir. That is the difference from looking at a chart and saying this is positive and finding those charts that are set up to outperform GOING FORWARD. I don’t care about the past (you can’t buy into a charts past) Pick any gold chart you like today and NEM will do just as well or better in the next 3-4 months. Obviously, some small penny stock that announces a big find or getting bought out will do better but if you have such a chart we would all like to know about it.
What do folks know about Newcrest? I realize they are an OZ major, but I know nothing about their project pipeline.
Is this about Newmont trying to fill a well that’s drying up, or is it about their wanting to remain among the top dogs among the C suite ego crowd?
Fundies? Write what you want about them, but everything in print is from the rear view mirror. And if its from their books, they came from the kitchen.
My chart reading keys off of cycles, and reversions to the mean.
I’m with Fully. The chart sucks FROM A FORWARD LOOKING PERSPECTIVE.
But its more than that for me, the entire sector does at this juncture (looking past the next several weeks).
At least into Q3.
“Is this about Newmont trying to fill a well that’s drying up, or is it about their wanting to remain among the top dogs among the C suite ego crowd?” M/A is always about both. Companies that aren’t able to come up with internal growth go outside and buy it. Part of that is about size. Either getting to be the biggest in your industry or trying to stay there. In the case of miners they need to replace dwindling resrves. Something I either didn’t know or forgot about since it was so long ago was that Newcrest was previously owned by Newmont and was spun off back in the 1960’s. It was also speculated by the author where I read about it that they may want to increase their copper production which they used to have more of and apparently Newcrest helps in that direction.