Bill Cara: Kinross Gold recommendation works out, Tues., Oct. 25, 2005, 4:21 PM

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October 25, 2005

Kinross Gold recommendation works out, Tues., Oct. 25, 2005, 4:21 PM

At noon on Friday, in addition to giving you a forecast that a dead gold market was about to wake up, I also referred to Kinross Gold Corp. The night before, Kinross had re-published its financial summaries, and I liked what I read. So, while KGC is not on my favorites list (it's too involved in Russia Far East, which is still a little like America Far West, 100 years ago), I felt compelled to point out its relative attractiveness at US$6.50.

At noon today KGC on the NYSE traded at $7.23, closing $7.15 (up +10.0 pct over the two and a half days). I see that one of the leading Canadian gold analysts has upped his estimates and opinion on Kinross. That's great; it takes me off the hook.

And the gold bullion (Dec-05) futures contracts were at 464.10 at noon on Friday when I wrote: I think it'll rally now". Today those contracts closed 474.70.

Tell me Cramer, who's your Daddy.

In truth, when I make these calls, I feel the weight of the world on my back. I truly, truly do not want to be known as a forecaster.

Just being called a good teacher is more than sufficient.

Posted by Posted by Bill Cara on October 25, 2005 04:22:22 PM | Category: Bullion , Gold , Goldminer Producers

Discourse

Bill-

Assuming one is following the Cara Global 100, is waiting for the markets to settle, and is wanting to go long at that time, could you please give some direction on how many positions that should yield at any one time? 25? 50? 10? Does the number give any indication of the number of puts one should be writing as one waits to buy? Calls as one waits to distributes? And when talking about weighting (%) per sector, how is that determined? What does it mean to be underweight vs. overweight?

Posted by: MarkM at October 25, 2005 4:37 PM [link]

Bill

Glad to see you're off the hook.

I was wondering when you wrote your "Follow up to my Friday call on gold stocks, Mon., Oct 24, 2005, 6:13 PM", your listing of gold stocks DID NOT include KINROSS GOLD (KGC). I thought the absence of KGC in your Monday comments unusual since you mentioned KGC at the time of the gold forecast.

I don't predict or know how high gold will go, but $500 does not seem unreasonable with all the factors you have mentioned and what is occurring worldwide. Thanks for your comments and insights.

Seamus

Posted by: Seamus at October 25, 2005 5:12 PM [link]

Bill-
You are a genius! Keep up the good work!
-MJW

PS I have heard rumors of gold > $1000 over the coming years... who knows. USD got smoked today.

Posted by: mike_wilmot at October 25, 2005 5:20 PM [link]