RE:Time to buy
bargainhunter6 wrote: I always like finding deals and like Marin Katusa says, the best buys are when emotions override valuation.
How I see it is as follows:
1) Asanko is a prime buy-out candidate by a major (likely in the $3/4.00 range)
2) Marin Katusa (a legend in the resource world) is doubling down on this stock at these prices
3) Sprott is likely not selling (all good signs)
4) The company will have ~100m by Q2 2018 which will be enough to fund Project 5M with additional money coming through Q3'19--> Q4'20 production
5) The company will extend their debt repayment due date with Red Kite to June 2019
6) They will have enough $/quarter to pay off the debt starting in the summer of 2019
7) Asanko's market cap is ~300m while the project is worth ~600m (every $100+ in the gold price = +200m market cap). Soo, the market cap could easily be 800m-1.0 billion (at least a 3 bagger from here)
I'm buying below 1.00 CAD (likely in the 90s) and expect the company to be bought out by next summer at prices 300-400% above the current value.
Interesting observation there.
I was out having drinks on a patio with a couple friends we have had since childhood this afternoon. We got talking investing in resource stocks, something we all do, and his name came up in conversation. I guess he had a BUY out on this name at $5.00 last November and then subsequent buy recomendations on this name at multiple times in between. All at lower prices each time, all the way down. Then this past Friday, he placed a recomendation to his subscribers to SELL at $1.00 just before the long weekend.
Negative 80% return on the recomendation, over a period of 8 months. That has got to burn somewhat to those that took his advice. Hopefully no one went in too deep.