AI
Tuesday, February 17, 2004 3:48:47 PM
*** Gold shorts send mixed signals ***
Yes, I sold half my DROOY today as well, "take the money when it's offered" <gg>
===============================================================
Hi Fishweed,
I don't usually pay much attention to Tim Woods 'spin' on matters 'golden', but it seems like DROOY is becoming the most widely shorted stock.
Gold shorts send mixed signals
By: Tim Wood
2004/02/17 Tue 10:32 EST
NEW YORK (Mineweb.com) -- Investors went on a selective shorting spree in November which had only slightly moderated by January (see tables at end of article).
According to latest available statistics shorts have been cutting their losses on Newmont, but went for broke against Placer Dome, Durban Deep, AngloGold and Kinross. Those three stocks saw significant increases in the short positions against them, led by Placer pessimists who nearly doubled the ante against the worlds fourth most valuable gold miner.
The higher short positions came despite gold galloping $10 per ounce higher from October to November. With 70 million shares short against the leading US quoted gold companies, an all-time record, there has only been a slight decrease back to the 63 million share level which is the trailing twelve month average.
On the present trend Durban Deep will surpass Newmont with the most shares short. Newmont has declined from a high of 16.5 million shares short last June to Januarys 11.6 million. Durban Deep, by contrast, has moved from 5 million to 10.7 million in the same period.
Agnico-Eagle has consistently been the riskiest stock for shorts. It has averaged 5.8 days to cover for the past year, more than double the average days to cover for the whole group.
The average hit its lowest level in a year of 2.1 days last October before rocketing to 2.7 days in November. The average has since reverted back to 2.6 days, well off last years record high of 3.5 days when the gold price averaged $340.60 for the month of April.
There was a notable reduction in risk tolerance between August and September 2002 when days to cover fell from 3.4 to 2.4 this was in stark contrast to consensus views that the market in gold and silver stocks had overheated in the summer. Short sellers clearly took the opposite view and continued to lighten positions ahead of the tremendous year-end rally at which point they re-engaged and added new bets.
Yes, I sold half my DROOY today as well, "take the money when it's offered" <gg>
===============================================================
Hi Fishweed,
I don't usually pay much attention to Tim Woods 'spin' on matters 'golden', but it seems like DROOY is becoming the most widely shorted stock.
Gold shorts send mixed signals
By: Tim Wood
2004/02/17 Tue 10:32 EST
NEW YORK (Mineweb.com) -- Investors went on a selective shorting spree in November which had only slightly moderated by January (see tables at end of article).
According to latest available statistics shorts have been cutting their losses on Newmont, but went for broke against Placer Dome, Durban Deep, AngloGold and Kinross. Those three stocks saw significant increases in the short positions against them, led by Placer pessimists who nearly doubled the ante against the worlds fourth most valuable gold miner.
The higher short positions came despite gold galloping $10 per ounce higher from October to November. With 70 million shares short against the leading US quoted gold companies, an all-time record, there has only been a slight decrease back to the 63 million share level which is the trailing twelve month average.
On the present trend Durban Deep will surpass Newmont with the most shares short. Newmont has declined from a high of 16.5 million shares short last June to Januarys 11.6 million. Durban Deep, by contrast, has moved from 5 million to 10.7 million in the same period.
Agnico-Eagle has consistently been the riskiest stock for shorts. It has averaged 5.8 days to cover for the past year, more than double the average days to cover for the whole group.
The average hit its lowest level in a year of 2.1 days last October before rocketing to 2.7 days in November. The average has since reverted back to 2.6 days, well off last years record high of 3.5 days when the gold price averaged $340.60 for the month of April.
There was a notable reduction in risk tolerance between August and September 2002 when days to cover fell from 3.4 to 2.4 this was in stark contrast to consensus views that the market in gold and silver stocks had overheated in the summer. Short sellers clearly took the opposite view and continued to lighten positions ahead of the tremendous year-end rally at which point they re-engaged and added new bets.
Dan 
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