Cramer Selling NovaGold (NG)?

Jun 9, 2011
J. Webster
Comments Off on Cramer Selling NovaGold (NG)?

Apparently, Jim Cramer is selling his position in NovaGold, the once loved gold miner who hasn’t produced any gold yet and their gold mines won’t produce any gold nuggets for at least five years.

The Yahoo Finance message board has the news, through, it looks like, someone who is a member of Cramer’s Action Alerts Plus charitable trust, and pulled the copy where Cramer states he selling his position in NovaGold since there’s talk that NovaGold may need to raise money do fund their gold mining projects. The stock has been getting hit hard the last few days, you could even say crushed, down over 10%, and down again today, even with the rest of the market and other gold stocks mostly green.

NovaGold is the stock that big time investment gurus George Soros and John Paulson currently own shares in, although Soros has a much lower number of shares than a year or so ago. Last year Soros owned 12,905,142 shares and now owns 3,492,100. Paulson however is one gold bug who thinks the commodity is going to $2000, and he owns 20,181,818 shares in NovaGold, still.

Here’s a thread from the Yahoo Finance message board for NovaGold (NG):

Re: Cramer sells

After you have received this Alert, I am going to sell a winner and a loser into strength this morning. I am going to sell 500 shares of Stanley Black & Decker (SWK:NYSE) at $68.48 and take in the 20% gain. I’m going to offset that by selling 2,400 NovaGold (NG:NYSE) at $10.34. I will likely sell the remaining NovaGold into strength … NovaGold is a special situation story in the mining industry with potentially big production growth potential in Galore Creek and Dolan Creek. It also is very levered to the underlying gold price and possibly a take out ultimately. But there is speculation it will need to do financing to fund these projects, and whether that is private funding or a secondary offering, I think it will be an overhang on the stock.
Re: Cramer sells
if you looked into the story and read the history of the company, you would realize pretty quickly how expensive their projects are and how small their balance sheet is…
Re: Cramer sells
Why did he pump it up for 8 months if he knew this was coming?
all of the sudden it has a secondary?
Re: Cramer sells
Good question
Re: Cramer sells
I’m eyeing the lows to get in, once Cramer sells all out.
Re: Cramer sells
Cramer is spreading a rumor to let butt-joo Soros in again at cheaper prices than he sold. It’s really simple to see.
Re: Cramer sells
Soros waiting for NG to drop 6.0-6.50 area.
He will probably load up again @ lower prices.
Glad I short here as I said NG going to SINGLE digits !!!!!!!
22,000 shares here for a buy ! 6.35
Re: Cramer sells
Doesn’t surprise me as he stated several times if the stock broke $10 it was a big fat sell.
Re: Cramer sells
Surprised me because he stated several times that he would be a buyer at $10. But he had been becoming increasingly bearish (e.g., lowered his price target from $20 to $14 a few weeks ago).
Re: Cramer sells
Good investors change and move money to where they think the most upside is, looks to me like he wants to put more in FCX for gold and copper. Nothing wrong with that if he likes that stock better.

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