Didn't like the way gold traded on Friday in NY ... bailed on 3/4 of KCN at 375 just now .. 20c short of target but still a 47c/sh profit inside 2 weeks. Keeping 1250 as a long term hold ... in the book at $2.25/sh after writing profit on the sale back into the ave purchase price !!! GROOVY !!!
A shocking week for KCN shares ... results announced early in week were excellent ... lower cash costs, increased production, and a raised profit forcast for next 12 months. Shares have plummeted ever since from 370 down to 330. A very well timed sale of 3/4 of my holding at 375 but feel the shares have been harshly dealt to for no reason. Any thoughts SROTHETH or BOBCO ... see LHG down to $1.11 !!! Amazing sell-off over recent months from the $1.70 area .... is there some real value in these stocks at the moment ... especially if Gold was to average say $380-390 for the rest of 2004.
Disc: Hold 1250 KCN and tempted by LHG at current levels !!
Nele
KCN Presently PE 6.25 Div yield 6.8%
Not a junior with potential but a producer with heaps going for it
Appears to be a well run Co
Every time it dips like this I dig around and buy a few more.
Cheers
For the KCN fans, OXR has an area immediately adjacent to Chatree.
There is a recent presentation to a mining conference on Oxiana's website, which includes preliminary rockchip sampling from Thailand.
Looks very promising.
Gold has slowly crept back up to the $415-$420 area ... with all the political/terrorism uncertainty around at present there is a real cahnce it could break gigher into a new trading range. Gold stocks look great value at moment ... my favourites and current holdings are Newmont,Newcrest and Kingsgate with KCN being my tip to outperform ... P/E less than 10 , div yield >5% and just mining an extremely rich seam within the Chartree mine which will boost AU recovery for the next few months, just as the gold price is looking very strong !! KCN currrently at 359
Actually Nele
I believe gold shares are undervalued in comparision to the physical stuff. They have taken a little more hammering in the recent down turn in the POG My pick is good cos like this should rerate in the near future KCN certainly good value and underated IMO[8D]
The last time Gold was anywhere near $420oz KCN were trading way above $4 .... I can't work out why the market is being so pig-headed about giving these well run producing gold mining stocks such feeble valuations on this latest $20 rally in the physical stuff. KCN looks especially cheap at the moment.
Nice move since my last thread ... 362 to 379 insde 48hrs. Stock is ex a 10c dividend so effectively now at 389. A far cry from 328 only a short month and a half ago. Plenty of mileage left in this one though !!
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