Ok guys, I've read plenty of good and bad stuff about AGM for a while and get annoyed at how personal some of the stuff gets. I've held AGM a few times with mixed results but here's my 2 cents worth...
Regarding the Dow, get ready for a really awful few days. I trade predominantly in the US and live here, so I am pretty clsoe to the ground on most issues. Check out marketwatch.com for news on Dow Theory.
Yeah, the idea is BS but if everyone believes it then it becomes a self fulfilling prophecy. Everyone sells, period. It makes no sense but it happens.
As we know there are always a few basic rules of investing. ALWAYS weigh up your downside risks vs your upside risks. There are plenty of downsides at the moment and very limited upside. The market is being run by fear...So much bad news. I've watched BHP and CVRD drop 12-15% in the past week. Better lose a bit of profit than take a loss, right?
Second, never fall in love with a stock. If the market moves, move with it. Don't fight the market and don't fight the Fed they say here. Barring an emergency rate cut tommorrow, there is little the Fed can do now to stop the rot. Traders believe the Dow Theory and will act on it Momnday (hopefully a small rally tommorrow before the crunch, a dead cat bounce!)
I sold my AGM today. I believe that it is more likely than unlikely that the price will continue downswards as metal prices draw back.
Check out Uranium for the short run. Its coming back after the US Govt dropped 0.5 mill pounds onto the market to screw things up. Its about the only price that has risen consistently in the past 6 weeks.
Anyways, somtimes prices of small companies get battered through no fault of their own. The Dow getting punished is bad for everyone, even in the days we now believe that the US has much less influence (check out the recent repsonse in world markets...) It has a material effect on AGM and metal prices on the short term.
I totally hope I'm wrong concerning the US markets, but I'm not prepared to take the risk and suggest you don't. If you have AGM then maybe hold, but not a good time to consider buying. It is an excellent company long term and hopefully 2008 will be better. After all, markets usually predict a recession by about 6-9 months. So the US is well on its way.
Good luck to you all, I know I need it right now. If it does all go bad its a GREAT OPPORTUNITY TO BUY! But for now, it is No time to be a hero!
Take care
AGM Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Not Held
