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  • Does the surge in gold mining stocks mean the bottom is in? Gold futures finish flat after a two-day climb, but the big story in recent sessions hasn't been the physical gold as much as the miners. The mining ETF (GDX +3.9%) is surging nearly 4% today, but that's after a ~20% YTD selloff. Today, miners are broadly higher: RGLD +4.5%, AEM +4.3%, ABX +3.9%, KGC +3.8%, GG +4.1%, NEM +3.3%[View news story]
    Gold miners are positioned for a rebound for they are by far less indebted then SPX companies on avg. they are much more profitable. and they are cheaper on P/E and EV/EBITDA. the only factor they underperform SPX is FCF, which for the sector is negative on avg. this year, I believe, they will be less dependent on gold price for they have cut CAPEX, which will make even those who are not already FCF +ive in 2013. The bottom should be close for it is a matter of time only when valeu seekers discover the phase of capitulation is over...
    Mar 7, 2013. 06:02 AM | Likes Like |Link to Comment
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