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Financial Media Sentiment On Gold Fields Ltd. (GFI): Negative (Apr-30)

|Includes: Gold Fields Limited (GFI)

Our analysis shows that the media and blogosphere have turned decidedly bearish on the outlook for Gold Fields Ltd. (NYSE:GFI), but is this extreme pessimism a buy signal?

After all, with the bar set so low, is most of the bad news already priced in?

Importance of Extreme Investor Sentiment

It is quite common to see irrational herd behavior among investors, especially if they all move together in stock trading.

Just think about it: if everyone is optimistic and buying, who else is left to keep buying the stock and push it higher?

Or alternatively, if everyone is pessimistic and selling a certain stock, there will come a point when the number of potential buyers far exceed potential sellers.

This is the goal of Contextuall: to identify examples where herd behavior has reached extreme levels.

We believe that, by identifying these areas of one-sided sentiment, investors could use these contrarian signals as a starting point for their own research.

Sentiment Stats: Gold Fields Ltd. (GFI) Compared to the Gold Miners Industry

Based on an analysis of recent Gold Fields Ltd. (GFI) news articles, about 14.0% of headlines have been classified as Positive, vs. the Gold Miners industry average of 28.78%.

44.0% of headlines have been classified as Negative, vs. an industry average of 16.94%.

Considering the extreme pessimism behind the stock, and our note on herd behavior, what do you think of the stock's outlook? Have investors become too negative? Is the upside potential greater than the downside?

Any comments on these sentiment trends? Let us know in the comment section.

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