GREY:AVGCF - Post by User
Post by
JonEcashon Apr 22, 2010 3:58pm
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Post# 17021006
Overreaction. Buying Op.
Overreaction. Buying Op.Guys, they will still hit their
.03 EPS for Q1 in my opinion, since it's based on sales not just production. They may have only produced 15K oz in Q1, but luckily (or wisely) they still had at least 7K oz in inventory that they didn't sell from Q4 last year.... So they could sell 22K oz at $450 profit, divide by 350M shares and you get
.03.
As the NR says, they've remedied the problem and should be able to produce (and sell) around 20K oz each quarter for the rest of the year. This will give us at least another
.03 EPS per quarter, which would be
.12 for the year. Take a multiple of 10 to 18 and you are laughing.
Like someone else said, we can see now why the financing was done. I'm sure Canaccord and Sprott will do what they can to promote/move this to recoup their cash. Otherwise how can they convince investors to buy into the bought deal shares, if they can just buy shares on the open market in the 60's? This is why I don't think we'll drop any lower. I was watching the T&S today and yesterday and Canaccord has been on the BUY. They bought 2M yesterday and are probably at a similar number today.
J$