IMG, IamGold update

img aug 10 2013 bimg aug 10 2013 gnm

This is a little superfluous, using two charts, but it illustrates the point that you can prove almost anything  and that depending on the chart, monthly, daily, hi-low or close etc.etc. the outcomes can differ tremendously. We have toyed with the idea that this might be a buy, see previous blogs. It sports a dividend of nearly 5% and a /e that is very seductive at 8.6X, at least according to the folks at big chart.  The EW structure is a clear zig-zag A – B – C down in which C is almost equal to A (not quite on Bigcharts, but already so on Globe+Mail chart). Presently we are sitting just above or just below the line connecting the lows and with a low of $4 coming from $23 in about a year and a half, there is no doubt that this stock experienced a bear market like few others. Provided there is nothing fundamentally wrong with this company, and we are not aware of anything, this one SHOULD be a buy on the basis of buy-low-sell-high. This would most certainly be the case if the stock approaches $2.