ncm where 2 from here flying or crying!!, page-22

BlackDuck_ZZup posted:

"NCM has indeed pegged its forward stocks/orders of Gold at US$800-900 an ounce hence its inability to continue north at the same rate as gold back in 2008 (if indeed this is correct as i havent done the intel)"

My comment:

NCM is unhedged. On 3/7/2008 NCM announced to the ASX "Newcrest completes hedgebook closeout." I suggest you do your "intel" before posting guesses about companies that are misinformation.

By the way, your post that the NCM movement on the ASX is forward looking indicating how gold is going to trade later that night on overseas markets is nothing but a punters' myth at best. I'm perfectly entitled to disagree with stuff like that.

If anything the NCM shart price has reflected the gold price moves that occurred on the most recent trading night before the ASX opens. But even that is very tenuous.

Gold is up over 30% since it first hit US$1000 in 2008. The NCM share price is only a few per cent higher than its 2008 high. NCM's underperformance since then in relation to the US dollar price of gold can be roughly seen in the following guide:

When gold rises NCM has tended to underperform with its rise or stay steady. When gold has been steady NCM has been steady or fallen. When gold has fallen NCM has outperformed on the downside.

Part of the problem - certainly with HUI stocks - has been hedge funds going long paper comex gold and hedging by shorting the HUI gold stocks. In view of NCM being a world ranking gold stock, it is possible similar tactics may have been applied to NCM.

I remain very bullish about NCM which is now of the world's biggest gold producers by production and market capitalisation. As this gold bull develops and heats up the NCM share price will soar imo as NCM will be seen as one of the world's must have gold equity investments.