Finweek English Edition - - INVESTMENT -

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.

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