6th Aug 07 Need decent news from the company Heading towards next support level R4.50 Nothing stopping it. Starts the day at previous & rapidly drops setting the new low rising slightly by end of trade. 7% drop today.
SO why sit with it. If you had a trailing stop loss you out with 20K extra in your pocket and buy it back later, that is the whole point as you have now compounded your gains. So you buy it for 4, sell it at 7 buy it back at 4 alowing you to buy 56% more stock thereby increasing your divs and your capital growth.
John, how do you know when its a good time to buy back? 600 looked good - then that fell. Then 550 looked good ... then 500 looked good... Often it falls to one of these levels, bounces then falls even futher. In your opinion is R4 where you would be buying?
I dont buy Gold companies perriod. they dont pay divs they are in a decling industry and the cost are rising the return on capital is bad and the managment in many cases has failed to deliver. But in term of the stratergy it does not matter if it 5/4/3 rand as long as the fundamentals are great like SAB for eg. and you buy it back for less than it cost you to hold. if you have compounded your money you have done well. and if it continues to fall you just exit again untill the next levels are met.
Bernard, ol' school mate of mine, don't think it is management in the mining business, it's the business. That is why IMO we gonna see hectic gold prices coming. Time to stock up on them Kruger Rands....