I started following this company b/c it is one of the bigger components of Vanguard's Precious and Mining Fund (VGPMX). This fund has earned me a lot of money since my initial investment back in March, but I'm thinking of taking my profits and investing 60% in one of the bigger components of it (GG, AEM, NEM, DDC or NSU).
I think DDC is the most promising b/c they are considering a common share buy-back program and will not be operating at full capacity for another month due to fire damage to one of their 2 mines.
What are your thoughts on this one? Do you ever take analysts predictions seriously; particularly Yahoo. It's trading at $9.60 right now and the Yahoo analysts are predicting a $15 target one year from now.
Any input would be appreciated.
To remove first post, remove entire topic.
I'd like your input on this one man.
Dominion Diamond Corp (DDC)
I started following this company b/c it is one of the bigger components of Vanguard's Precious and Mining Fund (VGPMX). This fund has earned me a lot of money since my initial investment back in March, but I'm thinking of taking my profits and investing 60% in one of the bigger components of it (GG, AEM, NEM, DDC or NSU).
I think DDC is the most promising b/c they are considering a common share buy-back program and will not be operating at full capacity for another month due to fire damage to one of their 2 mines.
What are your thoughts on this one? Do you ever take analysts predictions seriously; particularly Yahoo. It's trading at $9.60 right now and the Yahoo analysts are predicting a $15 target one year from now.
Sure...I will take a look and let you know what I think.
My first thought after reading your message was that you are looking at things in the wrong way.
I dont care about stock buybacks on their own right...how are those buybacks being funded and what is being sacrificed to do so? Is the buyback from cashflow or debt?
I dont care one bit about analyst reccos because they are paid to sell product...either mutual funds or ads or content or whatever...so analysts are not at all influential on how I evaluate a company.
I will look at this one and let you know...
Sure...I will take a look and let you know what I think.
My first thought after reading your message was that you are looking at things in the wrong way.
I dont care about stock buybacks on their own right...how are those buybacks being funded and what is being sacrificed to do so? Is the buyback from cashflow or debt?
I dont care one bit about analyst reccos because they are paid to sell product...either mutual funds or ads or content or whatever...so analysts are not at all influential on how I evaluate a company.
I dont know...seems like a stock kind of stuck since 2007, not like it is on some super sale here..
What I do see is way choppy revenues, if you look at their annual financials they are not growing...2014 numbers are the same as 2016 and 2015 had a bump but it didnt stick.
If you look at their statement of cash flows you see that they are paying the dividend with debt...they are not cash flow positive for even their operations. They are selling stock every year and increasing debt.
I really dont like when companies issue debt or sell stock to attract investors by paying debt..it means they are reducing shareholder equity to pay out more equity via dividends.
What makes you like it?
I dont know...seems like a stock kind of stuck since 2007, not like it is on some super sale here..
What I do see is way choppy revenues, if you look at their annual financials they are not growing...2014 numbers are the same as 2016 and 2015 had a bump but it didnt stick.
If you look at their statement of cash flows you see that they are paying the dividend with debt...they are not cash flow positive for even their operations. They are selling stock every year and increasing debt.
I really dont like when companies issue debt or sell stock to attract investors by paying debt..it means they are reducing shareholder equity to pay out more equity via dividends.
I owned Vanguard's Precious Metals and Mining Fund (VGPMX) and foolishly sold before Brexit. DDC is one of the major components of the fund and I was interested in buying one of the stocks.
Haven't pulled the trigger on anything as of yet. I'm feeling a little cautious right with the election coming up so I moved my VGPMX funds to HY Corporate Bonds. Seems to be a safer move if the market tanks.
Again, I thank you. You seem to know your stuff.
I appreciate your input.
I owned Vanguard's Precious Metals and Mining Fund (VGPMX) and foolishly sold before Brexit. DDC is one of the major components of the fund and I was interested in buying one of the stocks.
Haven't pulled the trigger on anything as of yet. I'm feeling a little cautious right with the election coming up so I moved my VGPMX funds to HY Corporate Bonds. Seems to be a safer move if the market tanks.
High yield corporate debt is not safe at all, in fact it is low grade high risk debt and at these inflated levels if rates go higher in general these HY bond funds are going to get killed...
I would not own a HY corporate bond fund for the pittance of interest they pay up here.
Careful..
High yield corporate debt is not safe at all, in fact it is low grade high risk debt and at these inflated levels if rates go higher in general these HY bond funds are going to get killed...
I would not own a HY corporate bond fund for the pittance of interest they pay up here.
I've been told, and I heed this warning. VWEHX has earned me 8.3% so far this year and daily fluctuations (if any) are .17 or .34% on average. It went down nearly 1% on the Friday of Brexit but I'm looking to exchange in to something more conservative. Not sure yet.
As of now, 65% of my non-retirement portfolio is allocated in Bonds and 35% in equities.
I'm still doing my due diligence and researching where to move some of my money. I've had a really good 2016 so far just as most investors.
I've been told, and I heed this warning. VWEHX has earned me 8.3% so far this year and daily fluctuations (if any) are .17 or .34% on average. It went down nearly 1% on the Friday of Brexit but I'm looking to exchange in to something more conservative. Not sure yet.
As of now, 65% of my non-retirement portfolio is allocated in Bonds and 35% in equities.
I'm still doing my due diligence and researching where to move some of my money. I've had a really good 2016 so far just as most investors.
Go to the Vanguard site or whatever broker you are using and actually look up the holdings in that HY fund...look at what they are investing in.
I think you will be shocked at how lousy the holdings are. That is a function of the bond market universe we are in right now...lousy, C rated corporate bonds are selling and are being bid up because there is no yield out there...it is very very scary honestly.
My inlaws were invested in Fidelity's HY corporate bond fund for years...they made something like 40% on the investment because they bought in before rates went so badly and they sold near the top. Earlier this year that fund, a BOND fund dropped 20%, how is that possible?
I would never ever invest in a HY fund at these rates...make sure you get prepared to bail if it breaks below your buy in price and dont be afraid to go to yieldless cash reserves because in my mind there is NO value in bond funds of any kind..especially C rated corp bond funds.
Do something for yourself here..
Go to the Vanguard site or whatever broker you are using and actually look up the holdings in that HY fund...look at what they are investing in.
I think you will be shocked at how lousy the holdings are. That is a function of the bond market universe we are in right now...lousy, C rated corporate bonds are selling and are being bid up because there is no yield out there...it is very very scary honestly.
My inlaws were invested in Fidelity's HY corporate bond fund for years...they made something like 40% on the investment because they bought in before rates went so badly and they sold near the top. Earlier this year that fund, a BOND fund dropped 20%, how is that possible?
I would never ever invest in a HY fund at these rates...make sure you get prepared to bail if it breaks below your buy in price and dont be afraid to go to yieldless cash reserves because in my mind there is NO value in bond funds of any kind..especially C rated corp bond funds.
junk bonds, HY corporate debt.. Call it what you want. People are in search for yield anywhere they can find it. Central Banks have distorted market reality, and we are dealing w/ its consequences and people piling into risky assets for decent yields. I don't think most folks realize the risks they are putting themselves in with their investments. We got a taste earlier this year when the market reacted to a miniscule 0.25% point increase.
Stock markets wait like panting dogs for the words of Janet Yellen, because she and her cohorts carry so much influence for the stock market and its current lofty valuations. The party is winding down, and the drug that is Central Bank easy policy is winding down.
Folks better start preparing for that reality when the life saving drug is removed from the patient.
junk bonds, HY corporate debt.. Call it what you want. People are in search for yield anywhere they can find it. Central Banks have distorted market reality, and we are dealing w/ its consequences and people piling into risky assets for decent yields. I don't think most folks realize the risks they are putting themselves in with their investments. We got a taste earlier this year when the market reacted to a miniscule 0.25% point increase.
Stock markets wait like panting dogs for the words of Janet Yellen, because she and her cohorts carry so much influence for the stock market and its current lofty valuations. The party is winding down, and the drug that is Central Bank easy policy is winding down.
Folks better start preparing for that reality when the life saving drug is removed from the patient.
Sometimes these merger bumps can keep going if the company turns it down and thinks they can get a higher price or if there are more than one interested parties.
You caught a break no question, the stock was hovering near multi year lows this month so maybe it will go higher.
One way to tell is determine what the offer price is, if say the offer is for all cash and the stock is trading ABOVE the offer, the market thinks it will get a higher offer...if the stock is trading within 10-20 cents of the offer and sticks there, then the offer should stick..if it retraces the offer, or if the offer is full of stock and contingent debt then the stock might back off...
Sometimes these merger bumps can keep going if the company turns it down and thinks they can get a higher price or if there are more than one interested parties.
You caught a break no question, the stock was hovering near multi year lows this month so maybe it will go higher.
One way to tell is determine what the offer price is, if say the offer is for all cash and the stock is trading ABOVE the offer, the market thinks it will get a higher offer...if the stock is trading within 10-20 cents of the offer and sticks there, then the offer should stick..if it retraces the offer, or if the offer is full of stock and contingent debt then the stock might back off...
Sometimes these merger bumps can keep going if the company turns it down and thinks they can get a higher price or if there are more than one interested parties.
You caught a break no question, the stock was hovering near multi year lows this month so maybe it will go higher.
One way to tell is determine what the offer price is, if say the offer is for all cash and the stock is trading ABOVE the offer, the market thinks it will get a higher offer...if the stock is trading within 10-20 cents of the offer and sticks there, then the offer should stick..if it retraces the offer, or if the offer is full of stock and contingent debt then the stock might back off...
Thanks a lot. You da man.
Quote Originally Posted by wallstreetcappers:
Sometimes these merger bumps can keep going if the company turns it down and thinks they can get a higher price or if there are more than one interested parties.
You caught a break no question, the stock was hovering near multi year lows this month so maybe it will go higher.
One way to tell is determine what the offer price is, if say the offer is for all cash and the stock is trading ABOVE the offer, the market thinks it will get a higher offer...if the stock is trading within 10-20 cents of the offer and sticks there, then the offer should stick..if it retraces the offer, or if the offer is full of stock and contingent debt then the stock might back off...
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