Undervalued? We are NOT AloneAs you know, by following my posts, I always sit back and review a bunch, or a group of "like stocks".
In general, many of these stocks have a share price that is the same price you could have bought them
at last March.
Since last March, the stocks climbed upwards to new highs, and then have since fallen back down.
The charts are still in a down trend, with a lot of them now treading water, consolidating, and moving
sideways, so to speak. Some would say "forming a base".
Meanwhile, the Price of Gold continues it's almost "boring" upward trend and is hitting all time highs.
The stocks I follow in this "bunch", continue to drill, grow and add ounces. In other words, they continue
to grow (in varying degrees), but their share prices are trending down, even though they are better
prospects now then before.
This is very frustrating.
CIBC says we are in the lower end of this grouping, when it comes to investors' evaluating the company, and hence
the resultant share price. The report says that investors just aren't giving GCU the credit it deserves
for the number of ounces the company has, by a LARGE margin.
It is actually a glowing positive report on GCU and it's potential----a "Glutch of Gold".
To me it is very conservative, but it does hit the nail directly on the head, when it states that comparatively
to other "like" stocks investors seem to undervalue it, and not give GCU the credit it should.
It is one of the reasons, they especially like GCU as an investment at this low share price.
I think what they are really saying, that GCU is a real "sleeper" at the current share price, giving it's state
of development, and growth-----especially given the current BULL MARKET in Gold and Precious Metals!
In fact, looking at GCU's stock chart-----the price you can get it at today, is the same price you could have
bought it for----are U ready for this?-----last NOVEMBER!!!!
Mind you, GCU had quite a good run up in price during that month, and rightfully so, given ALL of the increased
coverage with various analysts initiating coverage on GCU and their ever increasing 12 month price targets.
Still, in the light of what has gone on and transpired since that time (ounces added, the drilling, expansion,
financing, announced summer programme, the added deep drilling rig,and the rising POG, etc.)-------
they point out that GCU is a better buy now than PERHAPS it ever was!
Now, I am a tad biased, but I COMPLETELY CONCUR-----don't you? Especially upon reflection of
everything that has transpired since then? I mean since last November?!?
I think part of the perceived undervaluation problem lies with management, and their handling of communications
regarding the timing, bunching, wording, and the inconsistantcy of time periods----regarding company
News Releases. But that's, of course, just my own personal opinion.
Even CIBC mentions what they term "the LAG time" regarding GCU.
What does all this mean, and "boils down to?
It's quite simple really----RIGHT NOW IS A GREAT TIME TO BUY GCU, or add to your position.
Whatever the reasons for it, the current market, and the share price as it is, offers, especially late comers,
a RARE GOLDEN OPPORTUNITY to get in on this great play.
I don't have my notes with me right now, but what are the current 12 month price targets for GCU?
$ 3.50 $ 4.90 $ 5.35
GCU continues to get more coverage and analysts following our stock. NONE of these have DECREASED
their price targets, or estimates on the number of ounces GCU has-----5 to 5.5 Million ounces?
Oh YES, I almost forgot-----something very interesting was postulated in the CIBC report-----besides the fact
that they used $ 1,200 as the long term POG.
They said that with the increasing POG, perhaps the current cutoff of the grade of Gold assayed, used in
evaluating the number of ounces to be included in a NI 43-101, may be lowered---by HALF.
It makes sense to me, but then again, I may have misunderstood what they were actually saying.
Is it also possible that some of the higher grade assays could also be used more in the calculation,
instead of just being THROWN OUT for the calculation purposes, as now is the case? If the cutoff
for the lower end grades is lowered, and the cutoff for the higher end grades is increased---a double "whammy"!
Are the "times-a-changing", as I have personally postulated?
It should also be noted that in their calculations, CIBC did NOT give any value for the SILVER GCU has
assayed.
Early on in their report, CIBC did make an error---they said GCU had to build a winter ICE ROAD, from
Red Lake to Springpole---This of course is INCORRECT. They did point out that Domtar would be
contributing towards the cost of completing such a road, which is a bonus.
Anyway, it's getting very late, and INTI is meowing to get in----gotta go!
BARN BREATH