Sell: Goldcorp (GG)
From Capitalist Times
Updated from WSBI 778, February 17, 2016
Mining companies remain focused on scaling back capital expenditures, controlling costs and repairing balance sheets—a far cry from the previous emphasis on growing production at any cost. As the healing process slowly progress, commodity prices will be the primary driver of stock performance.
The recent rally in metal prices appears to have outstripped industry fundamentals, setting the stage for a pullback. However, investors shouldn’t expect a brutal selloff; investor sentiment toward the sector has improved, with commodity-focused ETFs and other index-based products attracting $12 billion in assets this year.
Gold-related ETFs experienced strong inflows in the first quarter, with their aggregate holdings of physical bullion surging by 300 million tons to 1.75 billion tons. Although sentiment toward commodities and mining stocks has improved, investors sitting on big gains from the recent rally should sell Goldcorp.
Yiannis G. Mostrous, Capitalist Times, www.capitalisttimes.com, 888-960- 2759, May 17, 2016