In 2012, if the value investors in the gold mining industry don’t buy the gold mining stocks aggressively, the large gold mining companies flush with cash will.
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New York, NY (PRWEB) January 31, 2012
According to popular online financial newsletter Profit Confidential, Pan American Silver Corp., the world’s second-largest primary silver miner, has offered $1.5 billion in a combined cash and stock deal to acquire Minefinders Corp. Ltd. The price tag is a 36% premium to where Minefinders traded prior to the announcement. According to Michael Lombardi, lead contributor to Profit Confidential, this is just one of the many mining deals that will take place in 2012.
“Gold mining stocks and precious metals stocks did not perform very well in 2011, but that doesn’t mean there is no value in them,” says Lombardi. “Usually, when a sector like this is beaten down or forgotten by the market in general, value players come in and buy it up.”
Lombardi points out that large mining companies are sitting on a big pile of cash, ready to be deployed. Barrick Gold Corporation has $3.0 billion in cash, Newmont Mining Corporation over $1.0 billion in cash, and Goldcorp Inc. almost $1.5 billion in cash.
“In 2012, if the value investors in the gold mining industry don’t buy the gold mining stocks aggressively, the large gold mining companies flush with cash will.” says Lombardi.
Lombardi believes this will spur other hedge funds and asset managers to take a look at the mining sector more carefully and cause more funds to flow into the gold mining stocks, driving prices much higher.
“Why buy gold bullion when you can buy a quality gold mining stocks at a discount to the price of gold bullion?” asks Lombardi.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.