Below are the news, What I don't understand is why after teh release
of these news in South africa GFI moved up only 2%, I would think it
would do much better, and in the US it's actually negative ( so far,
it just opened).

Opinions?

JOHANNESBURG -(Dow Jones)- Gold Fields, Africa's second-largest gold
producer,
Friday posted a more than threefold increase in net profit for the
financial
third quarter as a stronger metal price more than offset a decline in
production.

The Johannesburg-based company said profit attributable to
shareholders for
the three months to March 31 rose to ZAR1.25 billion ($164 million)
from
ZAR370.4 million a year earlier. The figure, however, was down 36% on
the
previous quarter, which included gains on the disposal of certain
assets.

Gfi is no doubt undervalued.  It should double based on its high
earnings/net profit, dividend and low price to book.  To me it is a
value play. During the first half of the year Jewelry companies do not
buy much silver and gold, and precious metal tend to be weak (like
they were the first quarter of 2008).  During the second half of the
year from Mid June through December 11th, demand for Silver and Gold
goes up with Jewelry companies increased purchasing for Christmas
Sales, Indian Weddings (in January) and Chinese New Years (in
January). During the third quarter, Gold and Silver rallies are based
on real demand.  Rallies into Septeber and November should be sold
because demand turns more towards the tech sector in the fourth
quarter.  I have also been asking the same question about cde and nxg
that also have good net profits and low price to book.

This seems like a bad investment for me. I saw the bull pattern and
went in at 14. Seems like the Gold price is reducing everyday in
Britain and so is the stock.

I think GFI is more affected by the negative issues there. Power
outage and reduction, political instability, xenophobia related
violence and accidents in it's mines rather than gold price... And
it's a pity because at current gold price and futures it should be at
least $15 in my opinion. I hope South Africa will sort out the power
issue and get a significant reduction in unemployment figures soon. My
average buying price is around $14.5 on this and I'm keeping it
because I see the potential for $20-26 is good in the next 12 months.