If you were wise enough to take my Sep. 15, 2014 advice to buy McEwen Mining, you would have seen the price per share zoom from US$2.36 all the way down to US$1.10 today (click the image to enlarge)!
Don’t you love me now? Joking aside, what could have caused the share price to decline by 53% in five months?
Did the price of gold collapse? No, the price of gold declined by only 0.34%:
Did the price of oil, a major cost of mining, skyrocket? No, the price of oil crashed by 43.32%:
Did a radioactive meteor crash into a McEwen Mining mine? No, McEwen Mining achieved record production in 2014:
Did McEwen crash the MUX price by selling shares? No, Rob McEwen on Dec. 12, 2014 bought 200,000 chares at US$1.28 each. Then on Dec. 19, 2014; he bought 1,000,000 shares at US$0.91 each.
So there can be only one reason the price of MUX went down so much: rich sellers got stupid. If you are poor and smart, you will buy more MUX now as the stupid people sell.