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"As a technician, I feel that there are few analysts that offer value for me, but you do. Your work on Gold ratios has helped my analysis greatly." --Jordan Roy-Byrne, CMT (The Daily Gold) 4.9.10
Tuesday, May 8, 2012
Attn: Subscribers... NFTRH Update
An update just went out noting a nearly registered target on the HUI and an individual stock settling toward support.
Also reviewed are the lower targets (HUI) and strategy for managing these events.
Gary, can you comment on HUI dividend yields. With gold at 1600$ they pay only 1-3% in dividends.
For example, Barrick and Goldcorp as largest HUI components have only about 1.5% dividend yields at these price levels. IMHO, based on dividend yields, prices are still not that cheap.
Hi Jovan, unfortunately I am not a fundamental stock analyst and am unqualified to talk authoritatively about dividend yields on senior gold stocks.
But since the HUI is in a secular bull market I would think that the low div rates reflect that.
In other words, it is appropriate to begin looking for higher div yields when looking for a bottom in a secular bear market and that is not what we have in the gold sector. HUI is just barely retracing 50% of the bull market out of 2008 today.
But again, I am not an authority on this by any means.
miners are set up nicely for a counter-trend rally. I bought some deep-in-the-money calls on GDX before lunch today. might take a bit for the group to find its bearings, but a bounce up to 50ish looks doable.
Gary, can you comment on HUI dividend yields. With gold at 1600$ they pay only 1-3% in dividends.
ReplyDeleteFor example, Barrick and Goldcorp as largest HUI components have only about 1.5% dividend yields at these price levels. IMHO, based on dividend yields, prices are still not that cheap.
Thanks.
Hi Jovan, unfortunately I am not a fundamental stock analyst and am unqualified to talk authoritatively about dividend yields on senior gold stocks.
DeleteBut since the HUI is in a secular bull market I would think that the low div rates reflect that.
In other words, it is appropriate to begin looking for higher div yields when looking for a bottom in a secular bear market and that is not what we have in the gold sector. HUI is just barely retracing 50% of the bull market out of 2008 today.
But again, I am not an authority on this by any means.
miners are set up nicely for a counter-trend rally. I bought some deep-in-the-money calls on GDX before lunch today. might take a bit for the group to find its bearings, but a bounce up to 50ish looks doable.
ReplyDelete