TSXV:AUN.H - Post by User
Comment by
JonEcashon Oct 15, 2009 12:46pm
279 Views
Post# 16390725
RE: RE: Shafter -Michael98
RE: RE: Shafter -Michael98Credit is still very tight, so many of these Juniors will fold through lack of working capital.
i have to disagree with you here. Capital IS tight, but only in the sense that only the BEST projects will be able to get funding. Poor projects with marginal profitability will not. Shafter is profitable and has a quick capex payback timeline with silver at $13.55....
If AUN was going to fold due to lack of working capital, they would have done so by now. The fact that Management took a number of cost cutting/saving measures, to enable the Company to survive without any dilution so far should be commended! They were savvy in their decision to sell off Rosario for cash and shares to focus on the other two; while still having a piece of the pie if Rosario goes into production. Plus, according to Lenic, La Negra is PROFITABLE, and will be even moreso once the expansion is done.
Fear and greed drive markets, AUN has gotten long in the tooth, focus has moved to other penny dreadfuls.
Long in the tooth? Are you watching the trading? Are you seeing the accumulation and money flowing into this stock? Fundamentally and technically, I see nothing but strength here. The small programmed buying by certain houses is NOT retail. And as was posted earlier, we are moving through resistance and looking ot climb back to former valuations. Now that climb will not be without it's pullbacks, but if you think we'll be selling off back to the low teens then you will be waiting a while.
Glad I bought more this morning. GLTA!
J$