MARKETS,Anybody even yet?

[olds442jetaway]

Interesting! I’ve been burned more than once when companies have cooked the books.

[dinghy]

I’ve been burned more than once when companies have cooked the books.

You can make money in old guard companies if they're sufficiently cheap. Everyone disrespected T, which has been a big winner the last year. (I sold too early .)

As for IBM with a 20% pullback for no apparent reason, I can certainly see your logic for sniffing around.

[olds442jetaway]

Bought some IBM, but sold 1/2 my Royal Gold and 1/2 AWF. Afraid market may get slammed at least in the short run. Wanted to lock in the gains just in case. I have owned AWF since 1995 so long since free because of the dividends, but only a small gain on the share price. It mainly focuses on divs. Also has a high expense ratio over 1 percent.

[dinghy]

Bought some IBM, but sold 1/2 my Royal Gold and 1/2 AWF.

With my chemical stocks dead cat-bouncing, I've got slim pickings to buy. My only temptations today are frackers. I've got AR, EXE and RRC all very close to my next buy targets.

[olds442jetaway]

I did pick up some GIS just before the close. Looks like both BGS and GIS creeping up on some of the latest news on inflation and other things. I’ve got my eye on EXE. See what happens tomorrow or the next day

[dinghy]

I did pick up some GIS just before the close.

I like it. I'm looking for a low 48 handle to buy more.

I’ve got my eye on EXE.

That's the former Chesapeake. Bankruptcy survivors are intriguing because they may have strong assets that are unleashed once the debt burden is reset. My strong performers this year have included: BTU Peabody, SDRL Seadrill, and TDW Tidewater. I'm out of VAL Valaris after a nice profit.

[dinghy]

Dubious selloff of the day: Wesdome beat expectations but guided production down from 200 to 195k.

WDOFF crashed >8% for the session. Fortunately, I was able to reduce into strength Wednesday, but today I added back all of those shares and then some.

It's not like they misplaced the gold. It's still there. They're just having complications accessing it.

I got some EXE below 95, but I want more.

[dinghy]

Hedge fund quarterly 13F filings were released, and UNH is +10% on news of Berkshire initiating a 5m share position.

After holding steady for a while, Berkshire resumed selling AAPL despite the stock price weakness through Q2.

I'm buying EXE, and mor WDOFF!

[olds442jetaway]

I sold the rest of my Royal Gold today at the high. I had Dr appts and couldn’t finish research in EXE. Bummer. Could have got it today under 93. It’s on my radar for Monday. I read the latest reports on WDOFF. Unless I’m missing something it looks like a screaming buy. Also on my radar for Monday.

[dinghy]

couldn’t finish research in EXE

You may already know more about it than I do. I don't have good knowledge of the oily companies, so I'm spraying and praying. I'm in from 102, with multiple purchases (down to below 93) Friday.

I read the latest reports on WDOFF. Unless I’m missing something it looks like a screaming buy.

It is (imo). This was Fred Hickey a couple weeks back in his newsletter: "For 2025, [analysts are] now forecasting $1.62 [earnings] per share. That's a ridiculously low P/E ratio of 7.7x. There is potentially huge upside with this stock, even if gold prices stop rising (not my expectation)...."

It's possible those expectations have slimmed down slightly, but so has the stock price.

Wesdome operates two underground mines in Ontario, both with spectacular gold grades around 10. Industry average is more like 2. Eagle River has been exceeding expectations, but they're having logistical speed bumps at Kiena. Management is relatively new and untrusted by investors.

As I understand, one reason for the cheap price is perceptions of underground mining. Analysts commonly value mining stocks by calculating a net asset value. Wesdome's NAV is artificially low because the deeper reserves are inaccessible and unknown.

Wesdome has spare capacity at both mills:



If the company can increase production as expected, costs should reduce sharply because the milling capacity is available and idle.

Many of my stock picks are high risk. For example, this week I added more BAK Braskem which is saddled with big debt and potential liabilities. But Wesdome is debt-free.

One potential catalyst for a Wesdome rerate would be a US stock (ADR) listing. Presently the company only trades OTC under the WDOFF ticker. You can't even buy it at Vanguard, and I think other brokers impose a surcharge. According to former hedge fund manager Bill Fleckenstein, a new listing is in the works. Wesdome is his largest holding, and he has direct communication with CEO Anthea Bath. (Yes, the company is run by a girl .) It wasn't mentioned on the earnings call though.