Thoughts on RED please
Hi MM Team, I was interested in understanding your thoughts on Red5 in light of its softer guidance announced on Thursday and the broader macro gold thematic Thanks for all your great work!
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Answer
Hi Alan,
Gold producer/explorer RED has struggled over the last few months falling by around ~35%. Unfortunately following Thursday’s soft production guidance, we think the stock may well continue to struggle.
- As you mentioned we have a adopted a neutral stance towards gold after it reached our $US2525-2550 target area.
- We own RED in our Emerging Companies Portfolio with the position currently under review even though it’s still showing a small paper profit, i.e. there could be better places elsewhere for the funds.
