GDXJ - Gold-Stock Mega-Mergers Bad
The world's two biggest gold miners announced mega-mergers over the past five months or so. These huge deals briefly garnered some interest in the usually forgotten gold-stock sector, and fleeting praise from Wall Street analysts. But gold-stock mega-mergers are bad news for gold-miner shareholders on all sides. They reveal the serious struggles of major gold miners, and really retard future upside in their stocks.
For decades the largest gold miners in the world have been Newmont Mining (NEM) and Barrick Gold ((ABX)). These behemoths have long dwarfed all their peers in operational scope. While the