IF WE WERE ALL SO GOOD19 Jan 2014 16:07
We'ed be financial advisers or better still, bankers with huge........bonuses. Time to lighten it up, boards are for exchange of info...opinion, and occasionally a bit of banter. Many thanks for kind words, an attentive ear to corrective, and an amused imagination to those uttered in consternation.
Back to business.
Friday....three main miners moved forward and held their gains...this dog did the Grand Ole Duke of York, ...again. Shorters are in fashion, but they do not make the market. For the past 2 years BLT has bounced between 1650 and 2200, RIO between 3300 and 2600, RRS between 7500 and 4000...on a straight decline since Sept 2012 and this rascal has been on steady decline from 1900 since Oct/Nov of 2012. Anything to be deduced?
RRS....slaughtered when Mali politics kicked off, and which are still in flux, no such similar excuse for FRES. The other two biggies, both took their falls and are currently somewhere midpoint to their high/low.....
Market size for the big two...1000 and 500....for RRS and FRES...500 and 2000 respectively.
FRES issued an "extra dividend" in Oct, having said:
Fresnillo said in August that its ordinary dividend payout would fall by 68 percent to 4.9 cents per share.
Fresnillo also on Thursday appointed Roberto Diaz as chief operating officer and said it remained confident that it would be able to restart its use of explosives at a gold project, despite a legal process taking longer than expected.
Unfortunately we are not seeing who is disposing of their holdings, and done in such a way that the SP has collapsed.
FOR PI's like ourselves who are holding ( me included since 875), I can only see a reasonable resurgence in SP if divvy is maintained at previous levels, thereby encouraging institutional buys. If no such confidence to buy is reborn, then this, like RRS is destined for a slow climb.
In the meantime I say hold.