Aguia is Selling Gold: Now for the Ramp-Up

Aguia is Selling Gold: Now for the Ramp-Up

The markets have reverted to reacting sensibly to economic news e.g fluctuations in interest rates. That is good to see, whichever way it moves. At the moment markets are more predictable. Last nights announcement that Trump was threatening a 50% tariff on imports from the EU and 25% on iPhones seems to have been absorbed without too much drama, but let us see if it means a turning point in the recovery.

Sentiment is still strong with the stocks under chart coverage. There is good reactivity to positive exploration results. Money is being raised, though too often at ridiculous discounts to the market prices. Takeover activity is accelerating with a number of deals being announced e.g. the New World Resources takeover.

Share consolidations seem to be in favour as companies tidy up registers with excessive numbers of shares on issue. Brightstar (BTR) and Pantoro (PNR) are examples of gold producers that recently consolidated aggressively with a positive effect on the price. These companies are different to those ratbag companies that just want to reset in preparation for subsequently blowing out the capital again.