They have made a nice profit. You will always get topslicing and fund managers have rules to follow. No problem selling them, plenty of buyers wanting to top slice when we hit £2.
What on Earth can we do with so much cash?20 May 2020 13:49
Gold up to $1751 , another days gold bricks to sell. What on Earth can we do with all the cash that our cash cow produces? You might like a dividend if you are an investor. You might want a buyback. You might want to pick up a bargain in troubled times. Any of these is better than flushing it down the toilet. Big problem here, bet a few companies would like to change places. Keeping my shares.
Gold trading today$1750 fact. Lots of buyers , twice as many as sellers fact. Production up fact. Oil down fact. Debt down fact. Everybody is entitled to form an opinion.
Historically large gold miners initially do best when gold rises, smaller gold miners follow with larger returns. I was invested in Randgold taken over with Barrick Gold, I chose to keep my new shares, my investment has trebled. My portfolio is dominated with precious metals and today is higher than a year ago. Hummingbird cost me 34.5 p and will next year fly .dyor.
Lots of buyers wanting to get into gold. Lucky for them that that some distressed sellers need to sell. These shares are finite and when mopped up will be a steal . Hummingbird is a cash cow imho.
We can expect some profit taking as the company had a lot of problems last year and created a buying opportunity. These problems have been sorted and the company now is a cash cow. It is an amazing opportunity to buy into gold and clearly the seller only has a finite number to sell. They will incidentally have lost a chunk of the profit that they could have achieved. As gold rises , so does their loss.