NYSΞ Daytraders

$AEM Agnico Eagle beats consensus slightly; slightly means Free Cash Flow b/wc of $1.6B vs $.7B last year. They see no reason to change cost guidance due to energy price increases; indeed, 54% of their diesel is hedged. Even without the hedges a 10% increase in diesel would result in $8 cost increase. Yet, today the large hedge funds continued to sell the $GDX on every up tick in crude oil prices: maybe, they should pay an analyst to read MDAs? A 68% increase in the price of Gold has led to a 128% increase in free cash flow; the large hedge funds that trade the mining ETFs from the short side may have enough capital to keep this sector volatile, but shorting companies with massive and growing free cash flow with central banks continuing to buy Gold seems like a stupid way to try to make money. Rising energy costs are not bearish for Gold Miners; indeed the Barron's Gold Mining Index rose 2500% between 1965 and 1980 during two energy crises. Not investment advice; do your own due diligence. Past outperformance of this sector does not guarantee future outperformance of this sector.

Four Reasons Why I'm a Shareholder of $NEM (Newmont): 1. Over the next five years, the cost to produce an ounce of gold will decrease significantly. This means the gold price doesn't even need to rise for net profit margins to improve. 2. Production is expected to increase by over 10% in the next five years, boosting overall output. 3. The Fed is poised to start cutting interest rates, which could push gold prices up by at least several hundred dollars. 4. Investments in new mines and expansion projects for existing mines will remain stable. This means that reasons 1, 2, and 3 combined will drive a significant increase in free cash flow. Free cash flow is everything, because it's the money that goes directly to shareholders.