Member Info for Impecunious2

Hi, Troajan, once more

Hochschild, cont'd.

Two of its three operating mines are in Peru (the other being in Argentina). So the reasons for the recent fall in the share price are: (i) Covid, Peru has the highest death rate in the world; and (ii) politics, it looks as if this Jeremy Corbyn figure, Pedro Castillo, is about to be elected as president. He has promised to nationalise all mines, which I think we may assume, would be detrimental to the hoc share price.

Political risks are the kind of thing that keep one awake at night; one has to do a lot of research to understand them, and events move fast. Australia, Canada, the EU and the US are the safest places to invest.

Best wishes

Hi, Troajan

I'd forgotten about Hochschild, until you reminded me. Technically, a buy at 155, and if that's broken, at £1 or thereabouts (which was the bottom in March last year). But you'd have to check the fundamentals; my memory is that there was some problem with the end of life (but don't we all have this?) of one of their mines. The hoc billboard on lse was informative when I last looked at it, six months ago.

Director buys and sells should certainly be watched. Eduardo Hochschild's timing has been excellent in the past.

Hi, Copperman

I was a chartist in 1976, when I worked for Bob Beckman (who was quite wrong about property prices, but whom I remember with great affection; beneath a cynical exterior, he concealed a kind heart); and in answer to your question, there's a lot of support at 0.75, if we ever fall that far, which we won't.

Best wishes

Hi, Prophet @9.49

I think this is quite a good joke (and wish I'd got there first). On this occasion, I agree with Mr Positive; on the other hand, BSG is right to say that there will be further fund raises, and therefore dilution. But this is not a problem; I've seen it all at Metal Tiger and GGP. The share price falls by 20%, then staggers sideways, then recovers. So what does it matter?

Yes, it's all good news. A lot of people are interested in Thor, and with good reason.

Hi, Mr B @13.41

I'm with you on this one.

Hi, 2020 @16.42

Gervaise may hold some shares here; it seems to me quite likely. But he's not going to return to the board of directors; he's too rich, and has better things to do with his time.

Hi, Hawaii

Very interesting post (point noted about Louis Castro). There may be some shorting; but also I think some PI's are selling, because the delay in lab results from Peru shows no sign of ending (highest covid mortality rate of any country in the world). And without news, the price will continue to stagnate.

https://www.bbc.co.uk/news/world-latin-america-53150808

Best wishes.

Hi, what

Yes, I was surprised by this as well. We're safe enough here over the longer term, because of the royalty; so if it comes down to 25 or some such, it's a buying opportunity. Until then, I regard it as a hold.

Hi, 2020

The rising volume is also encouraging.

Hi, 2020

The rising share price is good news (to myself, and I presume to everyone else here).

This is good news, everyone. There's much further to go, and we deserve it.

Hi, Dr @7.38

Newmont walked away from Ernest Giles, not from Havieron. Newcrest did some drilling at Havieron (I think in the 90's), found nothing (because they didn't drill deep enough), sold the licence to someone or other, who then sold it on to GGP, who then drilled deep enough to find gold; whereupon Newcrest jumped back in with a joint-venture. Life's full of ironies.

Hi, Breaktwister

Yes, I had thought about that, and it is reassuring.

Hi, Momentum

I don't want to be gloomy, but Newmont are engraved on my memory as the people that walked away from GGP in January 2018, causing a catastrophic collapse in the share price. Of course, we know that won't happen here. Or to be more exact, we believe that it won't happen here.

Hi, bsg @13.06

I think you're underestimating the importance of a change in CEO. GGP was a complete failure under the leadership of Callum Baxter; but from the moment that Gervaise Heddle arrived (in 2016), that changed. The same may be true here, which is one reason why people are buying.

Hi, Razor & Dryland

Thanks for the info on this. There's no telling how long the delay will go on for. Joe Biden's a busy man; but at some point, he will want to make sure that South America is fully vaccinated, because of the migration from there to the US.

Hi, TMT @ 15.02

It goes almost without saying that you have one of the most rational and analytical minds on this billboard (you should have been a professor of philosophy at Oxford, perhaps).

But on para 7, I do not altogether agree with you. The older one is, the more risk one can afford to take; for most of one's life is over, and therefore one has little left to lose. If we take the extreme example of someone who is going to be shot tomorrow morning, he should gamble all on the spin of a coin; for if he loses, it doesn't matter. If he wins, he has the comfort of saying, "At least, I got that one right."

Best wishes.

Hi, Jack @ 10.13

Very perceptive post. People get attached to companies they buy into for entirely understandable reasons. One would be richer, if one was entirely rational, and performed a risk/reward analysis every day, as TMT advises; but would one be happier? I think not.

There's also a time factor; most people don't have the time or the energy to start researching all the companies they don't own, in order to compare them to the three or four that they do own. So "we hang on to nurse, for fear of something worse."

Best wishes.

Hi, 5x8

I agree with you on this. I'm not in favour of people attacking each other; all it does is create stress and misery for the participants. I suppose for the observers, there may be some amusement, as there was for those who attended the Roman circuses, and watched gladiators fight to the death. But human knowledge is advanced not one jot.