See earlier blogs. Kinross keeeps dropping nicely and could, arguable, be completing the complete pattern. Do not buy the stock , buy the warrant instead. The stock could reach the $13 level, perhaps, but in this market stocks tend not to reach the bottom all that easily. For the warrants this matters very little as most of the value is time value which does not erode that fast anymore. Under $1 the warrants present a reasonable gamble on this stock.
On Jan 28 we recommended buying these warrants when they were trading at about $1.62. Our hope was that they would perhaps drop to $1, either way they should triple in value after that and of course, if you miss it all together nothing is lost other than an opportunity. Here is the chart , after the fact.
They way to do this, in my opinion, is to put in the order in advance. Suppose you bought that day at $2 in the expectation of tripling your money, you would put in the sell order at $6as soon as you are filled on the purchase. The simple reason for this is that these warrants are essentially derivatives and consequently can decay rapidly if near their expiry date or their strike price. Always settle for what you can reasonable get. For the Kinross warrants that would be about $3 if you buy at $1 or below.
We have been anticipating a move , possible to as high as $22. On this semi-log scale chart the a-b-c is almost perfectly symmetric and we would exit the stock.
Exactly a month ago we suggested that the stock could go to $8 or $10 if it went to the 4th wave of previous degree (that is on the way down). It actually went to $11 and then crashed as predicted by about one half or more. Here is the chart:
By having reached the 4th wave of previous degree and then some, the stock may have completed the up move for a good while. However, it also retraced almost perfectly to the bottom of a triangle, losing about 50% and doing so in a very clean a-b-c. This suggest that it could attempt a rise to $8.50 before anything else. The danger is that it has not (yet) reached $4 where it would (temporarily, perhaps) be a buy for a solid rebound. See chart below.
