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Subject: Re: Can short term trading work?

  1. 4,330 Posts.
    Message 3 in thread
    From: B J Foster ([email protected])
    Subject: Re: Can short term trading work?
    Newsgroups: aus.invest
    View this article only
    Date: 2002-06-02 04:20:24 PST


    Tim Josling wrote:

    > B J Foster wrote:
    >
    >
    >>>Very convincing. All you need to do now is post your trading accounts to prove that you can actually do this.
    >>>
    >>Ridiculous request. You have the example of WOW, did you understand it?
    >>
    >>
    >
    > You certainly picked WOW but I am not sure it is statistically significant.
    >


    Actually, I'm getting a little tired of being labelled a 'Trader' merely
    because I exploit short-term timeframes. The reality is that I research
    companies quite thoroughly and then wait for the right conditions. I sat
    on Delta gold (now Aurion) for 2 years waiting for Gold to break out.
    The starting point is fundamentals and short-term moves only improve the
    results. Why buy GARP (Growth at a reasonable price) when you can wait
    for the market to get really stupid & buy GASP?

    Freeport-McMoRan in Indonesia produces copper at a world's best cash
    cost. Their copper ore contains about 0.8g/t of Gold and the production
    cost is reduced from around $US0.70 (which is marginal) to around
    $US0.14 with the gold credits. In fact, Freeport owns the largest gold
    mine in the world but the primary product is copper. It is no accident
    that FCX is included in the Philadelphia Gold and Silver index:

    http://investor.stockpoint.com/quote.asp?SYMBOL=FCX&MODE=CHART&RepeatChart=1&sym3=$XAU&size=600x400&dRange=y1&PlotType=candle


    MIM's price has been falling recently along with RIO and BHP recently
    although it's fundamentals would seem to have more in common with Freeport:

    http://investor.stockpoint.com/quote.asp?SYMBOL=AU:MIM&MODE=CHART&RepeatChart=1&sym3=US:$XAU&size=600x400&dRange=y1&PlotType=candle

    MIM's gold reserves (about 8moz) are greater than AOR (about 7moz)

    http://www.mim.com.au/downloads/01AR_reserves.pdf

    This doesn't include gold reserves for Mt.Isa, where they produced
    28.8koz of gold last quarter.

    http://www.mim.com.au/downloads/02_3QProductionData.pdf
    Read the rest of this message... (49 more lines)
 
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