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Josh Brown's take on the downdraft in gold miner stocks (GDX, GDXJ): "They still suck......

Josh Brown's take on the downdraft in gold miner stocks (GDX, GDXJ): "They still suck... Management [messed up by] issuing tons of stock and hedging wrongly on the way up, removing hedges at the top and then getting entangled in all sorts of uneconomical projects in harsh geographies to add insult to injury. And as equities, by the way, if the stock market crashes, trust me, they do too."
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Comments (16)
  • Doug Eberhardt
    , contributor
    Comments (3164) | Send Message
     
    So buy physical! http://bit.ly/14bkOpZ
    27 Jun 2013, 01:15 PM Reply Like
  • deercreekvols
    , contributor
    Comments (6032) | Send Message
     
    Is Josh Brown in Middle School?

     

    If not, then he should not speak as if he is.

     

    Clean up the language, Mr. Brown.
    27 Jun 2013, 01:17 PM Reply Like
  • DJ Sandcastle
    , contributor
    Comments (41) | Send Message
     
    @JB - You hit the bullseye. Just look at the margin trouble they're in.

     

    Gold Stock Operating Margins

     

    Legend:
    a = Company
    b = In 2012
    c = At Current Gold Price
    d = Fall In Profit Margin

     

    a = Newmont
    b = 26%
    c = 3%
    d = -86%

     

    a = Goldcorp
    b = 52%
    c = 38%
    d = -28%

     

    a = Barrick Gold
    b = 44%
    c = 27%
    d = -39%

     

    a = Kinross Gold
    b = 30%
    c = 11%
    d = -65%

     

    a = Newcrest
    b = 48%
    c = 35%
    d = -27%

     

    (Data from Bloomberg).

     

    @dcv - The best writing is to write the way people speak, and few get it right. Anyway this is a GDX commentary, not an English lesson - sheesh, take a chill pill.....
    27 Jun 2013, 01:43 PM Reply Like
  • deercreekvols
    , contributor
    Comments (6032) | Send Message
     
    Thanks for the reminder that this is not an English lesson.

     

    25 years of teaching can do this to me. I detest people using phrases like "this sucks" and I was surprised to read this here on SA. I don't find much difference between this language and outright cursing. There has to be a better way to say something "sucks" without using the word.

     

    Writing the way people speak can be a slippery slope, in my opinion.

     

    Chill pill has been taken and I am feeling much better.
    27 Jun 2013, 03:50 PM Reply Like
  • sugarsail1
    , contributor
    Comments (108) | Send Message
     
    What's wrong with outright cursing if it expresses the way you feel? I think we have an uptight grammar Nazi here folks!
    GDX blows...better?
    29 Oct 2013, 06:43 PM Reply Like
  • GaltMachine
    , contributor
    Comments (1154) | Send Message
     
    GDX & GDXJ have already crashed! Y/Y charts are terrifying.

     

    They are barely above their 2008 lows. Seriously a little late to the program with this advice.
    27 Jun 2013, 02:18 PM Reply Like
  • auroastra
    , contributor
    Comments (53) | Send Message
     
    If GDXJ has not already crashed I'm screwed.
    27 Jun 2013, 02:26 PM Reply Like
  • Raylan58
    , contributor
    Comment (1) | Send Message
     
    This rant sounds like a buy signal.
    27 Jun 2013, 03:01 PM Reply Like
  • rollingstone100
    , contributor
    Comments (56) | Send Message
     
    Nice info by DJ Sandcastle ! GG looks best. The GDXJ is selling at BV if that means anything in today's environment due to likely coming write downs....
    27 Jun 2013, 03:01 PM Reply Like
  • Continental Kid
    , contributor
    Comments (214) | Send Message
     
    I agree with the call ....but Josh is becoming the most obnoxious Fast Money guy ever....always talks over people or cuts them off....prefer K Fine or Adami
    27 Jun 2013, 03:09 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8963) | Send Message
     
    I highly recommend buying the miners at these bargain basement prices.

     

    The global economic system has never been in poorer shape.

     

    Open global fiat currency debasement is the order of the day.

     

    Am I wrong?

     

    Nope.
    27 Jun 2013, 04:30 PM Reply Like
  • Special Situations and Arbs
    , contributor
    Comments (646) | Send Message
     
    AUY and EGO are two low cost producers that may be in much better shape than the large producers
    27 Jun 2013, 04:48 PM Reply Like
  • J Collins
    , contributor
    Comments (178) | Send Message
     
    Josh Brown says, "And as equities, by the way, if the stock market crashes, trust me, they do too." During the 2008 crash, (from November 2007 to March 2009) if you had been invested in gold bugs index stocks (HUI) you would have beaten the SP500 by over 43%.

     

    If during the IT crash (from July 2000 to January 2003) you had invested in gold stocks, you would have beaten SP500 by over 378%
    27 Jun 2013, 05:34 PM Reply Like
  • CautiousDave
    , contributor
    Comments (11) | Send Message
     
    So gold stocks are still overvalued because the broader market hasn't crashed yet?
    28 Jun 2013, 08:01 AM Reply Like
  • auroastra
    , contributor
    Comments (53) | Send Message
     
    Thank you J Collins
    27 Jun 2013, 07:17 PM Reply Like
  • GaryLee276
    , contributor
    Comments (153) | Send Message
     
    DeerCreek..I detest teachers that feel they have to lecture about the proper way to speak. This website is about money.
    28 Jun 2013, 06:50 AM Reply Like
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