We got savaged attempting to bottom-fish a promising-looking Hidden Pivot support in First Majestic today. Should we double down with a similar gambit in New Gold? Yes, for reasons given her previously. As ‘Maven’ noted in the chat room, owning the stock for a dollar or less is akin to buying a cheap call option that doesn’t expire. Granted, NGD could conceivably be on its way to zero, and we should at least be prepared for it, unlikely though it might be. But as far as speculations go, we could do far worse. The company is a well-regarded multinational with an enthusiastic following and productive mines on three continents. It’s shares are surely out-of-fashion, but that in itself is not an argument for shunning them. Accordingly, I’ll continue to recommend bidding 0.96 for 400 shares — just above at Hidden Pivot support at 0.94 (see inset).
