Allied Nevada Gold Corp. Director Carl Pescio - Richer this week, Poorer this month | Mining University

Allied Nevada Gold Corp. Director Carl Pescio - Richer this week, Poorer this month

 In late May, Forbes.com published a story about Allied Nevada director Carl Pescio.  The article, Who Got Rich This Week, increased his net worth by $12.9 million in the week preceding 25 May 2012.  The article is completely factual, but also not quite fair.  The article states in part:
In addition to serving on the board of Allied Nevada Gold Corp., he (Carl Pescio) also holds 5.3 million shares of the gold mining company. Though the price of gold has receded from its fall 2011 highs, recent market volatility and general economic instability seems to have inspired enough fear to drive gold producers higher in anticipation of a flight to the yellow metal in the coming months. On the week Allied Nevada is up nearly 10%, with shares changing hands at $27.58 in early trading on Friday. As for Mr. Pescio’s shares, they are now worth $146.2 million, $12.9 million more than a week ago.
 It is true that Carl has 5.3 million shares of Allied Nevada stock and that the price jumped 10% that week.  What is not stated is that the stock price at the beginning of May was above $29 a share.  This means that, while Carl Pescio made $12.9 million in one week, he lost $7.5 million over the first 25 days of May.

I imagine that all big gainers feel this same way.  That their big gains are really just recouping some of the value they have built up over time.  Allied Nevada stock has a 52 week high of $45.54.  Carl has a long way to go to get back to that point.  I hope that the readers of this, if not Forbes.com, will forgive him for making some money this week after losing so much this year.

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