By Adam Hamilton – Re-Blogged From Zeal
The junior gold stocks corrected hard in recent weeks, setting them up to blast higher on Wednesday’s less-hawkish-than-expected Fed. That started to dispel some of the serious bearish sentiment that has been mounting in this sector. The junior gold miners’ fundamentals justify much-higher stock prices, as evidenced in their recently-reported fourth-quarter operating and financial results. They remain very bullish.
Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by securities regulators, these quarterly results are exceedingly important for investors and speculators. They banish all the sentimental distortions surrounding prevailing stock-price levels, revealing the underlying hard fundamental realities. This greatly helps in re-anchoring perceptions.
After spending decades intensely studying and actively trading this contrarian sector, there is no gold-stock data I look forward to more than their quarterly reports. These offer a true and clear snapshot of what’s really going on, overcoming all the misconceptions bred by the ever-shifting winds of sentiment. If you have capital deployed in this sector but don’t watch the quarterlies, you’re shooting yourself in the foot.