Gold stock to sell #5: Harmony Gold Mining Co. (HMY) - Jamie Dlugosch

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Gold stock to sell #5: Harmony Gold Mining Co. (HMY)
Sep 13, 2009 06:00 PM UTC

Jamie Dlugosch

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Symbol	Sentiment	Start	Return	Closed
HMY		09/13/09	+6.39%	--

Via BloggingStocks:

Filed under: Stocks to Sell

In my perusal of gold stocks, only one -- Harmony Gold Mining Co. (NYSE: HMY) -- trades rationally, but that is not enough to justify holding the stock if you believe, as I do, that gold prices are likely to fall.

Even with gold at $1,000 per ounce, HMY trades for a modest 12 times trailing earnings and 15 times forward earnings. For this valuation to hold up, gold prices need to continue their ascent at a fairly significant clip. If gold is truly a hedge against the end of the world scenario and collapse of the dollar, investor expectations should be to protect capital. These gold mining stocks, including Harmony, trade like growth stocks.

Do you see my point?

Continue reading Gold stock to sell #5: Harmony Gold Mining Co. (HMY)

Gold stock to sell #5: Harmony Gold Mining Co. (HMY) originally appeared on BloggingStocks on Sun, 13 Sep 2009 13:00:00 EST. Please see our terms for use of feeds.

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