Re: News - Trader Dan On Gold Mining Shares
in response to
by
Welcome To The Golden Band Resources HUB On AGORACOM
Saskatchewan's SECRET Gold Mining Development.
Message: Re: News - Trader Dan On Gold Mining Shares
"Mining Shares Continue being Pummeled
No matter which way you measure it, the mining shares are systematically being destroyed as the HUI just made a new 52 week low in today's session.
What else can be said about these shares that has not already been said - their performance against the price of gold bullion has been atrocious while they have seriously underperformed the broader market since September of last year.
Management needs to get out in front of this and where possible, cash profits should be returned in a much larger percentage to the shareholders in the form of a stronger and higher dividend. They have to give the owners of these shares some incentive to continue to hold them and with zero to mere meager dividends, there simply is not enough to keep the longsuffering holders hanging in there.
In an interest rate environment as low as this one, a 2% dividend is a joke considering the fact that there has been a huge capital loss in so many of the shares. That sort of dividend does little to compensate the holders for these paper losses that so many are accruing. Only those who for the most part bought into the shares at the end of 2008 or into the first part of 2009 have some cushion to work with."
What else can be said about these shares that has not already been said - their performance against the price of gold bullion has been atrocious while they have seriously underperformed the broader market since September of last year.
Management needs to get out in front of this and where possible, cash profits should be returned in a much larger percentage to the shareholders in the form of a stronger and higher dividend. They have to give the owners of these shares some incentive to continue to hold them and with zero to mere meager dividends, there simply is not enough to keep the longsuffering holders hanging in there.
In an interest rate environment as low as this one, a 2% dividend is a joke considering the fact that there has been a huge capital loss in so many of the shares. That sort of dividend does little to compensate the holders for these paper losses that so many are accruing. Only those who for the most part bought into the shares at the end of 2008 or into the first part of 2009 have some cushion to work with."
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There's a very real reason why mining shares are underperforming the gold price so very badly on Canadian markets. There is no requirement to mark a short sale for certain institutional and arbitrage accounts, which has quite literally meant almost all of the trade in GBN.V stock for an extended period, since the no-down-tick rule was abolished.
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-F6
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