GoldCorp (GG) was the very first investment of mine for gold I have touched in my life. I believe it was around 2003 or 04. I didn't know gold investment much but just thought to buy something of it. I think GG was around $12 or so when I bought it. It doubled in 1-2 years and I cashed out half of my shares. It continued to go up and I eventually sold all my holdings, way too early from its top. GG is a great gold mining company (I believe the 2nd largest one in the world) with an excellent management team and very profitable. It is even paying about 1.5% dividends. I have been thinking to get back to it for years but it was simply jumping up and up without giving me much chance. Now a good opportunity may be coming up.
The overall gold mining sector has been terrible in the past year, way lagging behind gold itself. GG is no exception. Adding to its pain is that GG missed its earnings in the first quarter of this year. Expectedly, people dumped its share en mass. GG has come down over 30% from its top, trading hands below $40 now. I read a report of an analyst claiming that GG was a great buy below $50. Now it is below $40, it must be a supper buy. I agree. I have 2 plans for it: one is to buy some GG stocks for my retirement portfolio with dividend reinvestment, a kind of thing I will just leave it there without looking & touching. The other part is to speculate with options. I'm thinking to do some complicated option setup (3 legs) so that I can get in at low $30s to bet for significant capital gains in 2 years. The idea is that if I'm wrong, I won't lose much but if I'm right, I can gain a lot, a ratio of 1:5 at least.
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