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Goldfields (GFI) : South African major


drbubb

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OLD - but interesting

 

Gold Fields (gfi) Revisited

Posted on 04/05/2007 10:09 AM | Link | Post Comment

I came as close to pounding the table on GFI as I ever will any stock (not very) with this post as well as the post linked within it. Weekly & monthly views were presented of this major South African gold miner along with a risk reward proposition that was in no brainer territory if one was willing to endure a buck or two downside with orders of magnitude upside. Today's chart (daily) shows GFI likely in the process of breaking resistance in the 19 area, which if surmounted targets 22 +/- in the near term. I continue to hold all shares and call options. The options will be gone however at 22 if not sooner. I would imagine some of the legions who were either scared out or were flat out bearish on gold stocks due to their subscription to widely held financial media myths are of heavy heart as the likes of many smaller stocks go off like so many bottle rockets. Still, I would not recommend any of those that I hold as buys now. GFI, if you're willing to be patient and endure an increased downside risk still looks good for the longer term (in my opinion) and it may well be breaking out for short term gain as well, maybe after a bit of putzing around here at the b/o line. Do your own DD, please. I like the funda's here (mostly having to do with Rand exchange and valuation relative to other majors) but I am a chart twittler. Research thoroughly any stock you may be interested in. FWIW Harmony (HMY), another SA that I hold, has broken out nicely. Can GFI be far behind?

 

-more: http://www.themoneyblogs.com/biiwii/my.blo...-revisited.html

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I like to gain exposure to South African miners through the closed-end fund ASA Ltd. (ASA) - for a small investor such as myself, it provides diversification across a number of S. African gold miners without needing a consequently large portfolio. It also, due to general bearish investor sentiment on gold mining shares, trades at a considerable discount to NAV so you're essentially buying the shares for below their current publically listed price.

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  • 5 months later...

THe Escom electricity crisis has sent the GFI price back down ... update : 3 yrs

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3 years

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Another buying opportunity here?

 

On similar logic, I bought calls on this one :: AU :: on Friday

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