This could be the cheapest big gold stock in the world today

I have written several posts recently about the HUI Gold Bugs Index using fundamental analysis techniques, such as earnings and projected earnings for each of the 16 gold miners comprising the index. And I have pondered the future of gold miners using technical analysis that has considered established price trend lines and the momentum of both index and individual component miners using the True Strength Index (TSI) indicator. Finally, I have offered my thoughts using something of a hybrid analysis technique. That being the supply/demand positioning of the hard ball professional traders, otherwise identified as the Commercial and Managed Money subsets and identified in the weekly Commitment of Traders Report (COT).

But tonight, this post will be different once again, though it will be about the HUI Gold Bugs Index - at least indirectly. Rather than discuss the HUI index at large, I am so disgusted with how stupid cheap this group has become I thought it fun to see if I could figure out which of the 16 is the 'most stupid cheap' (and by implication most likely to appreciate fastest when the selling pressure is exhausted).

If you would like to consider a huge miner with enormous capitalization, gigantic liquidity, lots of cash in its vault, positive earnings, diversified multi-national operations, a history of getting oversold then moving hundreds of percent higher within a single year and of course, selling TODAY at a stupid cheap price, then I think I just may have a stock you'll want to take a closer look at. 

With no further adieu, I give you my vote for the 'Most Stupid Cheap' gold miner of the HUI Gold Bugs Index. 

IAMGOLD CORP (IAG)

Let's take a look at the monthly and weekly charts, beginning with the monthly, and see what this cash-cow of an investment looks like.

Click on any chart to ENLARGE

This very morning IAG traded down to $6.04 then bounced to close with a 5.31% gain for the day at $6.55.

The TSI has provided a positive divergence BUY signal and downward momentum appears about ready to be declared exhausted.  (more)

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