Once again you need to pay attention to what I said. The appearance of an inverted yield curve does foretell 'reliably' a forthcoming recession. But nothing in my comment suggested that it would not happen, it asked whether current economic conditions justify believing it is 12-18 months away.
DCN is a small gold producer. Today is a day of swirling eddies and the repression of panic. The knowledge one can glean from DCN prices today, is limited. If you compare the volumes in trade for DCN - it is clearly in a different world than that which it was in prior to its most recent collapse in price. I hold the stock, so I have an expectation of higher future prices. However, I am not so much a slave to my prejudices as to exclaim that it will be anything like $2 in the near future. Heck, there were people in August 2016 who paid over $3.70 for the stock and as recently as April last year people paid over $3.
My remarks about recent price increases and declines was that the stock is operating in this new world, driven partly by this belief tha anything gold is a safe harbour in the coming storm. I don't have a target for DCN, I have held it since June. I expect it be volatile as I suspect many of those holding the stock today have a short-term horizon - basically speculators. If it consolidates above $1.50 the stock will exhaust those who still have faith in the deeper trend beginning in early 2018.
Depending on how its prices dynamics unfold in these circumstances is the basis for starting to entertain the idea that DCN might surpass $2. Nothing about today, except perhaps that more people are looking at gold assets, tell me anything at all about what is likely to happen in the coming weeks leading up to the next set of announcements by management. Remember, as well, short-sellers remain quite active.
If you believe that there is an overwhelming charge into gold and gold miners, consider PNR over the last couple of weeks.
DCN Price at posting:
$1.26 Sentiment: Hold Disclosure: Held
