DGC update

DGC feb 10 2016

We have made some good calls on this stock. Right now we are not at all sure what to make of it. We think it is ahead of itself big time. The recent low was around $4 and we got to $21 which is a fivefold increase. Were we to apply that to ABX we should have that stock around $40. Goldcorp went from a low of around $13 to $21 but should have gone to $65, which would have been a new all time high. DGC is new and big and is not making money. Recently they came out with a new LOM, a Life of Mine plan, a little bit like getting a facelift. This is the first time that this was done by DGC’s own technical team!

There is something missing in the equation. Perhaps this is the new darling of the goldmines but we just cannot escape the feeling that this one is a tad ahead of itself.

In EW terms, as said, it is not clear but one possibility is a double zig-zag, that is an a-b-c X a-b-c. If you like head & shoulder stuff , that would be pretty scary too. Time to sell.

I looked at my previous blogs and notice that the low was actually more like $3, which makes the above math even worse. Our target then, exactly a year ago, was actually $28. The problem is that they are doing it alone.

If wrong this stock could go straight up, as in a series of 1-2’s. We would now be in 3 of 3.