Newmont Getting Spanked
Between the double dip pullback in the metals today and a company specific issue, NEM is getting a spanking today, down 5 dollars as I type and almost 10% at it’s low so far today. I would be alarmed if it was down this much given gold is only down about $20 dollars or so today, without any accompanying news. The news is, that last eve. after market hours, the company announce that their CFO resigned. I looked this morning to see if there was any explanation, but didn’t find anything to either make me worry or relieve me of company specific concerns? Wall Street tends to sell first and ask questions later, but unless some big institutional holders know something that isn’t common knowledge, I am at a loss as to how to react to the news. If there wasn’t something fishy going on at the company, then I would use this as an entry point. I don’t know yet, but between the company needing to address this in more detail, and checking to see if NEM is signalling something is wrong with the gold market, I am in wait and see mode for now.
Uncertainty about the resignation which means nothing really and some jitters regarding the reduction in its percentage held in the GDX ETF from around 11% to 9%. Just bought some more.
I know it’s common practice to mess with stocks right before a big move up. Big players drive it down then buy low.
Earnings out a week from Thursday.