TSX:SUE.WT - Post by User
Comment by
Sir_Holleron Jun 06, 2011 1:29pm
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Post# 18676347
RE: Bloomberg News
RE: Bloomberg NewsSUE is already trading at a significant discount to its 52-week high of about 30% despite the addition of significant value. The stock is also trading far more below some of the analyst target prices. Cormark has a $4.25 target price. This would suggest substantial adjustments to the tax rate, etc., have already been discounted. AAB, which owns a near 10% stake in SUE, loves it and views it as a strategic holding, and has it as its largest holding. In the end the growth in reserves and development of the mine should far outweigh even substantial changes by Humala as long as nothing radical happens. He does have to deal with the Congress, which should help tame any ambitions he may secretly harbour, and he has backed away from some of the more severe fears. His appointment of a cabinet could help reduce fears further. Many say he depends upon capital, and this lesson has been learned, and this should moderate him.