Centamin (Gold) Stock - Sell or Hold

danicheng

Hi All

I am holding 489 stocks for Centamin (Bought these at 98p) and last week the price was at 161p and since the announcement of the election it has rose to 178p as of now.

Since it is a gold stock do people think I should keep or sell this share?

cloud_dog

danicheng wrote: »

Hi All

I am holding 489 stocks for Centamin (Bought these at 98p) and last week the price was at 161p and since the announcement of the election it has rose to 178p as of now.

Since it is a gold stock do people think I should keep or sell this share?

I don't know, why did you buy them?

Was it simply to turn a profit or for other reasons? If it was to make money then you have done that and you could happily sell having made a nice profit.

I'm not sure if anyone has a crystal ball and can tell you how much higher they may go.

The other thing you need to somehow differentiate is how much of the SP increase is due to the companies performance and how much to the Sterling decline.

cloud_dog

The other thing you may want to investigate is the dividend policy and possible future dividends.

The company made a significant dividend payment for the last FY and they have a stated dividend policy of distributing 30% of net cash flow after sustaining capital costs (yada yada). So, two things....

1. The SP might be being supported because of the excellent divi (still over 8%, if sustained)
2. Has the comapny / brokers provided any indication of likely net cash flow for 2017 etc?

danicheng

cloud_dog wrote: »

I don't know, why did you buy them?

Was it simply to turn a profit or for other reasons? If it was to make money then you have done that and you could happily sell having made a nice profit.

I'm not sure if anyone has a crystal ball and can tell you how much higher they may go.

The other thing you need to somehow differentiate is how much of the SP increase is due to the companies performance and how much to the Sterling decline.

The reason for purchasing this was to make a profit which if I sell now would turn a profit on top of the dividend that was paid out this year. Just wanted to see what other thoughts were given the current climate and knowledge of what others would do.

Thanks for your repsonse

cloud_dog wrote: »

The other thing you may want to investigate is the dividend policy and possible future dividends.

The company made a significant dividend payment for the last FY and they have a stated dividend policy of distributing 30% of net cash flow after sustaining capital costs (yada yada). So, two things....

1. The SP might be being supported because of the excellent divi (still over 8%, if sustained)
2. Has the comapny / brokers provided any indication of likely net cash flow for 2017 etc?

The broker has recommended this a strong buy, but this doesn't give me the indication or reassurance to hold or keep this stock

cloud_dog

I don't think anyone will be able/willing to guide you one way or the other, there are just too many factors and considerations.

What is your investing style? Are you more of a trader? What guidelines do you set for 'trading' (rather than investing), i.e. once I make 50% I sell etc etc?

If you sell are there other opportunities you see for investing/trading?

Are you just looking to protect your gains (goes back to your investing/trading style / rules).

If you are unsure then sell (never wrong to take a profit) or sell half and leave the remainder invested.

EdGasketTheSecond

If Trump gets impeached then gold will fly but it would be safer to invest in a gold mining ETF than just Centamin. How much profit are you making and has it reached your target? Is there something better to invest in? The reason for today's rise is the fall in sterling.

elephantrosie

EdGasketTheSecond wrote: »

If Trump gets impeached then gold will fly but it would be safer to invest in a gold mining ETF than just Centamin. How much profit are you making and has it reached your target? Is there something better to invest in? The reason for today's rise is the fall in sterling.

what gold mining ETF would you recommend?

Pincher

If you don't need the money, I would let it ride.

Opportunity cost. What are you going to use the money for, that will give you better value? Wine and women? Or, shoes and toy boys. This is an Equal "Opportunities" comment.