Smart money exited HGO weeks ago in the high 30's and 40's (Unfortunatly I wasnt one of them!) Smart not necessarily because HGO has no prospect of creating wealth from their assets, more so it could forsee a global pull back that HGO would invariably get caught up in.
What is "smart money" doing now? I would think its looking at the fundementals.
Is this a bubble deflating? ....dont think so
Are complany P/E valuations excessive?.....dont think so
Are we and the rest of the world in danger as slipping back into recession.....unlikely
Is the Super profits tax likely to get up in current form....probablly not
Will china, India, and the rest of asia continue to grow and need our resources? and are resources becomming harder to get at a reasonable price?.....most likely
Are stocks like HGO rediculously cheap now?....probably
Is there some more short term downside ....maybe
Where will the SP be longer time....much higher possibly multiples higher
I would think "smart money" will be starting to accumulate
AB
HGO Price at posting:
28.0¢ Sentiment: ST Buy Disclosure: Held
