Brent Cook worked alongside Rick Rule from the late 90’s to the early 2000’s at Sprott Global Resource Investments Ltd. A respected geologist and speaker, he is now the author ofExploration Insights.
“The major miners were being slammed with a falling gold price at the beginning of 2013,” he told me earlier this year. “They wanted to mitigate the damage to their share price. ‘What can we do to attract investors?’ they asked.
“Their best idea was to lower expectations as much as possible. They felt that if they lowered expectations related to production, costs and profits, then at year end they could beat, or at least meet those expectations.”
How did that work out?
“Well, to a large extent, they managed to meet or beat the lowered guidance for 2013, and the analysts were able to brag about the new numbers.
“Sort of, that is.
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In September 2011 the Gold Bugs index, the HUI stood at 630 as gold prices peaked, since then both have trended lower with the HUI losing about 65% of its value. The bottom has been called a number of times and after such a dramatic decline its difficult not to think that we are there now. However, as we all know the timing of any investment is crucial to its success and that is exactly what we are trying to do here, trying to pick advantageous entry and exit points. If you would like to know which stocks we are buying and selling please join us at ‘Stock Trader’ our premium investment service.
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