Have the Tides Turned for the Troubled Goldcorp?

Jan 23 16:01 2018 Print This Article

The last few years have been a struggle for Goldcorp investors.  The company has been overshadowed by declines in earnings, falling gold production and increased costs.  Many investors have abandoned the stock for other gold miners with more momentum.  Yet there are a number of green shoots that suggest the management is turning things around.  There has been considerable cost cutting to try to stabilize earnings while the outlook for production is increasing toward 3 million ounces by 2020.

There comes a transitory moment in a stock where the disappointments of the present are outweighed by the opportunities of the future. That moment usually comes unnoticed by many as most have left the stock for dead and simply are positioned elsewhere.

Will investors be rewarded for taking a risk here or will the stock still be overshadowed by its disappointing 2017 performance? What are the risks? How does one position themselves into the stock?

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Option Matters

OptionMatters.ca is a blog about the Canadian options market. OptionMatters focuses on sharing information and insights concerning the use of options in various market conditions. OptionMatters is part of the educational mandate of the Montréal Exchange to assist Canadian's in perfecting their risk management skills.

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