RE: I love profitHonkey I am in your camp. Yes, ring the register, no shame in that at all. HRG has something for everyone, just depends on your definition of risk/reward.
Folks can speculate all they want about Severstals intentions. If they really wanted to buy out the minority, they would have used some of the cash they used to buy Crew, and done it a long time ago, just my opinion. Also, make no mistake about what Igor has delivered thus far, and the market is taking a better view of HRG's performance. Make no mistake, this is no fluke, 3 quarters in a row, making money, positive cash flow, and fixing up the balance sheet, Say what you want, but stick to the facts please. I am certainly no friend of Severstal, and I did not like everything they pulled, but they did pull us out of the mud.
How about some facts. OGC p/e 37.18, WDO p/e 13.72, VGC p/e 738, LMA p/e 20.89 and HRG p/e 7.83. What does this tell you? Tells me we are going much higher. Probably a double from here in the near term, and a ten for some us who have been holding longer.
I will admit because of the way Severstal smells, we will never get full p/e value, but we should get 75% of it. Especially when Royal releases their hold, and we gets news on Bissa, Prognoz, uodated reserves. And news on the IPO from Severstak Gold. In my opinion HRG really needs to boost to the reserves with the drill. We will get another $40-$50 million profit in Q3 and maybe more in Q4. That would give HRG around .20 per share profit at say 15 p/e gives about $3.00 share, maybe. On the other hand if Severstal were not in the picture we would be at $3 now and shooting for $6.
So for all those penny flippers, just have a eye for what is really going on. But what the hell, every investor has a tolerance. Then again, who thinks gold will go down in value over the next 6 or so months? Not me. All I know is gold will be much higher, and the central banks, especially the US Fed wants to inflate the economy, and will try not to let the genie out of the bottle.
CJ