Me Bad - Why I missed out on Philex
Me bad. Really bad!
I missed out on Philex Mining (PX - P2.02) despite the fact that the charts are telling me to buy back my position.
I sold out all my holdings in PXB last February when it hit P2.32. My average selling price for my entire position is around P2.16. Not bad considering that my average cost is around P1.02. I turned neutral on the mining sector particularly on PXB due to the following:
1.) Gold price might take a while before it makes a new high. From how I see it, it will consolidate between US$ 535 - US$ 570. I am no expert in gold, but the chart is pointing to that argument. The key driver for PXB is the price of gold. With gold price not expected to make any significant move, I do believe that the share price of PXB will stay at current levels.
2.) There are speculations that Philex will declassify its shares. I believe they will. I am just waiting for that to happen before making my move.
3.) There are questions whether the government or the congress will repeal the Mining Act. I don't think they will but it will create some noise in the short term.
So why did the share price of PX move from P1.60 - P2.04? There are talks that Ivanhoe Mines is interested to acquire a stake. Should I believe the story? I guess the price speaks for itself. Morale of the story - always trust your charts!
I missed out on Philex Mining (PX - P2.02) despite the fact that the charts are telling me to buy back my position.
I sold out all my holdings in PXB last February when it hit P2.32. My average selling price for my entire position is around P2.16. Not bad considering that my average cost is around P1.02. I turned neutral on the mining sector particularly on PXB due to the following:
1.) Gold price might take a while before it makes a new high. From how I see it, it will consolidate between US$ 535 - US$ 570. I am no expert in gold, but the chart is pointing to that argument. The key driver for PXB is the price of gold. With gold price not expected to make any significant move, I do believe that the share price of PXB will stay at current levels.
2.) There are speculations that Philex will declassify its shares. I believe they will. I am just waiting for that to happen before making my move.
3.) There are questions whether the government or the congress will repeal the Mining Act. I don't think they will but it will create some noise in the short term.
So why did the share price of PX move from P1.60 - P2.04? There are talks that Ivanhoe Mines is interested to acquire a stake. Should I believe the story? I guess the price speaks for itself. Morale of the story - always trust your charts!
posted by jack galt at
10:40 PM
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