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$23.35 newcrest mining limited

News: NCM Mining M&A spree to keep Australia dealmaking humming after $37 bln in Q1, page-8

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3,302 Posts.

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26/04/23

17:55

Post #: 67464739
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Originally posted by Kohnra: ↑

I think there is risk in executing this as a strategy. Let's assume you buy $50k worth of NCM following that logic. The upside is around $3.5k assuming a 7.5% roi on today's sp. It would only take a drop of $1.30 from today's price to loose the equivalent you hope to achieve. The downside risk therefore is a real possibility. A quick drop in the spot price of gold could knock 3 to 5% off NEM flowing through to NCM. Another point to consider is that anyone entering this trade now will be subject to the non discounted capital gains tax, so that 3.5k will more likely be ~ 2.5k. If you think $50k on the line for the potential of 2.5k is reasonable? then go for it. For me however, the juice has to be worth the squeeze.

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I bought $100k at avg at 28c - with the franked divs I think it's an easy $15k+ provided deal go ahead and gold doesn't go down.

NCM Price at posting: $29.11 Sentiment: Buy Disclosure: Held
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