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2/16/17

New Gold (NGD) and the triumph of the human spirit

Your humble scribe opens the NGD Q4 results documents last night, plugs the numbers into the spread, then shakes his head, closes XLS, does something else. Then the next morning (i.e. today) reads a whole swathe of "NGD not so bad" notes from the Canadian brokerages and watches in complete amazement as the stock gets bought up to the tune of 5% or so.

Seriously, how do the paid whores in suits writing this blithering nonsense about a company destined for the share price scrapheap sleep at night? They're telling me to look at the record low cash costs, are these people nuts? Look at the freakin balance sheet!




Nobody in their right financial mind who spends time looking at the numbers then sits them next to the potential of River River would buy this stock and that's because This. Company. Will. Not. Escape. From. Its. Debt. NGD is a dead man walking and only question about the day of the restructure that decimates the equity value is "when?". The market is telling me this company is worth U$1.67m market cap? Holy maloney!

But don't pay attention to lil ol me, the share price is rising! Buy, buy buy! It's the triumph of the human spirit and hope. But hope always dies right at the end. Which is coming.