NovaGold Resources (AMEX:NG), if for no other reason, has garnered some attention because of investment of major players like George Soros, John Paulson and Marc Faber. Faber also sits on the board of the company.
NovaGold recently started to make a momentum move, although they have pulled back with the price of gold, although they've rebounded nicely today.
They continue to be a long-term investment, even though they will make money in the short term from momentum alone because they are largely undervalued, and the long term for the same reason.
But much of the company is potential at this time, because their huge Donlin Creek project in Alaska will take time to bring online. Some measure that project alone as pricing the company at about $40 a share.
NovaGold is trading at $14.44, gaining $0.97, or 7.20 percent as of 12:25 PM EST.
Wednesday, November 17, 2010
NovaGold Resources (AMEX:NG) Starting to Make its Move?
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2 comments:
This is a perfect time to sell short NovaGold. It is so overvalued and everyone at my investment firm agrees. It may have 50% interest in a large gold mine, but it still does not even put it close to the prospects of gold for BTO Gold, Barrick Gold, Eldarado Gold, and Breakwater Resources. This company's stock will fall in the next week or so, regardless of the movement of gold in the market. Sell it short now, while it is still high!
This is the type of company suitable for takeovers. 50% suggests it's not a competitor, it's a target.
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