Discover y s hares got a ggressively sold off after a modest trading update (HEPS 0%-10% lower) that disappointed the market, or did it just confuse the market? Here is an extract from that update: “As a result of the accounting for the recapture of reinsurance and the increase in the fair value of puttable non-controlling interest f inancial liability, shareholders are advised that headline earnings per share are expected to be between 0% and 10% lower.” Now I am sure that means something real but how about some English so we can actually understand the issues?
Discovery Limited no discernible patterns and any trader frankly has a 50/50 chance of being on the right side of that swing. That, of course, means you have an equal chance of being on the wrong side of a wild swing and if geared that could see massive losses. The easy answer here is to simply leave gold alone. Don’t invest in gold stocks and don’t even trade them, if you like gold, then buy NewGold.