Now, I like Newmont

Yesterday, Newmont Mining’s (NEM:US) quarterly result was not well received by the stockmarket.

Its shares fell 13%.

I’ve been waiting for cheaper prices in Newmont Mining and has mentioned this is various writings, with the most recent post link attached.

Newmont Mining keeps getting cheaper

A day later, NEM stock bounced 3.5%.

Its recent closing price is $46.14

Only 3 month ago, Newmont’s stock price was $86.

That was April 18th, 2022

Its market capitalisation was $66 billion.

On April 20th, 2022, I wrote this note, calling for Newmont’s stock price to ease.

Newmont price to ease

An extract from that note was, “…….it’s plausible that Newmont uses its well priced equity to make some acquisitions or raise some capital itself.”

Today, it’s market cap is $35.4 billion

Now I’m wishing to buy the stock at $42.80. 

Furthermore, we’ve seen 35% of the total shares outstanding (502 million) turnover since that April high.

While 300 million shares or 21% of its share issuance have traded in the past 9 weeks, which 8 of those weeks posted negative returns.

When coupled with the indicators on the chart below, I’d say we are looking a picture of exhaustion and cumulative amount of volume capitulation.

July 27, 2022

by Rob Zdravevski

rob@karriasset.com.au