Why McEwen Mining's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of gold and silver miner McEwen Mining (NYSE: MUX  ) rose as much as 18% today after gold and silver climbed higher.

So what: As I am writing gold, has climbed 2.4% on the day and silver is up 3%. The rise in either asset would be a positive for the company's operations, because it could squeeze more revenue from gold and silver sales.

Now what: I don't think a single day's jump in gold and silver alone is a good reason to buy shares of any mining stock, so I'll stay away today. Both assets have struggled since reaching highs in August of last year, and I'm not going to bet that the momentum will last. Gold, in particular, has been very volatile, and if you're looking to get into mining stocks I would pick a day that it's lower to buy in.

Interested in more info on McEwen? Add it to your Watchlist.

Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On May 17, 2012, at 3:52 PM, Rokclimber1 wrote:

    With McEwen at the helm, MUX is a must own. Will it drop further? Maybe, but its near its yearly low already with lots of downside pressure of late.

    But I not only would never bet against McEwen, I'd run over anybody to own any stock in any company he is running.

    This guys track record speaks for itself. He has never failed at anything and everything he touches 'turns to gold'.....

    And how many Guys at the helm of a company, especially a still unproven/profitable one, show how good they feel about the future by taking no salary and instead buying the stock....if it goes up...he makes his 'salary'...if it doesnt, he loses and gets no salary.

    Most CEO's will line their pockets to get rich even if their company fails.....Very refreshing to see McEwen not do this and show he has tremendous faith in the company and the future of the valuation/stock price.

    I personally think this is one of those stocks people will kick themselves HARD for not buying under $10, let alone in the $2's -$5's....

    McEwens past track record and actions with MUX speak for themselves and they YELL.....OWN SOME MUX...YOU WONT BE SORRY AND WILL SEE AWESOME GAINS.....

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