KCN - Kingsgate Consolidated

[fanger]

End Jan 2010, KCN share price $8.80 AUD . Gold price was $1065 USD
End Jan 2013, KCN share price $3.99 AUD . Gold price is $1679 USD
What has gone wrong here ? Could anyone please explain ?

Its gone from $12 to $4 between 2010 to 2013 because cost of production has tripled.

 

[G Gekko]

Despite increased production costs, KCN is still a really profitable company. In this market, I feel as though companies like these are being unfairly hammered and I rate KCN as significantly undervalued when considering a perspective that in the present day circumstances are temporary. I really feel that as the global economy picks up companies such as these will be positioned to do exceptionally well, so have placed an order to buy 444 shares at a limit of $2.25. I anticipate my order will be filled with no problems.

 

[JTLP]

Despite increased production costs, KCN is still a really profitable company. In this market, I feel as though companies like these are being unfairly hammered and I rate KCN as significantly undervalued when considering a perspective that in the present day circumstances are temporary. I really feel that as the global economy picks up companies such as these will be positioned to do exceptionally well, so have placed an order to buy 444 shares at a limit of $2.25. I anticipate my order will be filled with no problems.

Really profitable? Their latest quarterly showed rising costs and not a lower end to their production forecast.

Gold would have to turn pretty hard for me to have a look and they don't seem to be turning around any time soon. Plenty of time to wait and better companies out there with cheaper oz production - check out PRU for example.

 

[G Gekko]

Really profitable? Their latest quarterly showed rising costs and not a lower end to their production forecast.

Gold would have to turn pretty hard for me to have a look and they don't seem to be turning around any time soon. Plenty of time to wait and better companies out there with cheaper oz production - check out PRU for example.

Thanks for your feedback. You've prompted me to look deeper into the company's prospects and I decided to cancel my order. I looked at some gold charts and realized this company's heavy exposure to gold prices on it's bottom line. Based on a presumption that prices would rise... the company may still do quite well... but it would be more speculative in my mind that gold won't continue to tread downward.

(A presumption that it will decrease is equally speculative but if I wouldn't be willing to buy gold at this point... I'm probably better off side-stepping this stock).

 

[G Gekko]

Just to add, although my view of gold was initially negative I decided to invest in another gold stock who I felt had stronger fundamentals to capitalize on the next few years. I still don't rate KCN too poorly at this stage, but they probably have some work to do to address cost issues.

 

[JTLP]

Thanks for your feedback. You've prompted me to look deeper into the company's prospects and I decided to cancel my order. I looked at some gold charts and realized this company's heavy exposure to gold prices on it's bottom line. Based on a presumption that prices would rise... the company may still do quite well... but it would be more speculative in my mind that gold won't continue to tread downward.

(A presumption that it will decrease is equally speculative but if I wouldn't be willing to buy gold at this point... I'm probably better off side-stepping this stock).

Whilst I can't give you investment advice; I'm glad you dug a little deeper. Plenty of time to assess what will happen to the market and definitely read up and follow a stock for a little bit to understand more

 

[Country Lad]

Follow up from the breakout thread. Break from an obvious pattern.

Cheers
Country Lad

 

[Country Lad]

Stopped out this morning obviously, as I was with a number of others. Seeing I was out most of the morning and didn't look at the market, thank goodness for conditional orders.

Cheers
Country Lad

 

[qldfrog]

conditional order was too tight big loss, offloaded half of them at 2.08... the rest will keep the damage is done

 

[skc]

Stopped out this morning obviously, as I was with a number of others. Seeing I was out most of the morning and didn't look at the market, thank goodness for conditional orders.

Cheers
Country Lad

The correlation between all the gold names are quite high (and somewhat divoiced from the gold spot price of late) so when you have multiple long positions based on recent patters, you are going to cop a bit of portfolio heat on a day like today.

So far almost every gold miner's report have been sold...

 

[pixel]

The correlation between all the gold names are quite high (and somewhat divoiced from the gold spot price of late) so when you have multiple long positions based on recent patters, you are going to cop a bit of portfolio heat on a day like today.

So far almost every gold miner's report have been sold...

For me, the curtain fell on Tuesday:
Distribution Indicator had fired last week;
Candlesticks shaped up for Reversal;
After more than doubling from 2 months ago, holding on seemed just too risky.

 

[skc]

For me, the curtain fell on Tuesday:
Distribution Indicator had fired last week;
Candlesticks shaped up for Reversal;
After more than doubling from 2 months ago, holding on seemed just too risky

I probably would have held. Gold spot price has been firming up and with tension in middle east and all that, an expectation of continued upswing in gold miners probably isn't that silly.

Some of these gold names are at the cusp of profitability at current gold price, so small variation in gold price results in large variation in profitability and hence valuation. So even though it's doubled from the bottom I don't think that's enough of a reason to run away last Tuesday.

Anyway, my call is all hindsight anyway so ...

 

[pixel]

So even though it's doubled from the bottom I don't think that's enough of a reason to run away last Tuesday.

Not by itself, I agree.
But there were several signals coming together: When I see Distribution signals, the candles screaming "Reversal!" and momentum turning sharply down, I know where to put my profits.

PS: I had also a Fibonacci study showing 261.8% on $2.88.

 

[gildas]

Lol, I bought KCN @2.5 and then add to move outback and then it's 1.92.
I wonder what should I do? I may keep it until end of September as I already lost a lot.

 

[jerkygirl]

Poor Kingsgate, getting smashed left and righ since I bought at 2.18 few weeks back now...where to now...please come back up!

 

[Tsubodai]

Could there be some light at the end of the tunnel for Kinsgate with 1.15Mil bids and 0.65Mil asks? or will it continue its slide until it crashes through the earths crust? Here's hoping it will regain some of its value as it deserves.

 

[skyQuake]

Could there be some light at the end of the tunnel for Kinsgate with 1.15Mil bids and 0.65Mil asks? or will it continue its slide until it crashes through the earths crust? Here's hoping it will regain some of its value as it deserves.

Today's close will be a swing low imo

 

[skc]

Today's close will be a swing low imo

Index rebalance today so expect funny business I suppose...

 

[skyQuake]

Index rebalance today so expect funny business I suppose...

Expecting some selling into the close... and that cap raising whenever that comes on

 

[UMike]

FYI.

http://www.abc.net.au/news/2016-12-...ernment-mine-closure/8126340?section=business