RE: So where is this stock headed?Amerigo Resources is a producer so their fortunes are tied to the price of copper. Keep in mind copper is priced in US dollars so everytime the Canadian dollar appreciates that drags the bottom line. Todays price $4.23US/lbs x 0.95(exchange factor=$4.01 Can). Copper prices are weaker than they were say two weeks ago. While copper prices remain high the high flying loonie does put a drag on things.
Company has good value, relative safety, but currently timing is poor due to recent divididend and short term inventory levels, and short term weak demand comming from Japan. The copper market is getting mixed messages, on one hand China's Minmetals tried to buy Equinox do to long copper shortage in China and on the other hand China is singnaling high short term inventory levels. Sorta feels like we are being played. However anyone associated with copper forecasting appears to be in agreement that inventory is currently high, supply is limited, and demand will increase over time.
Worth pointing out that ARG is a producer and producers will not have the fantastical ups and downs that explorers will have. The company has a solid balance sheet but their success is tied to the price of copper. I think we are near the bottom of the channel and would expect to see prices go sideways for a while and than up. Target price of this stock by some analyst is $1.68.
I think the basic issue with the stock is timing as commodities like Gold are advancing and yet small equities are not. Bernanke has left a lot of investors scratching their heads as to what lies ahead for the American Economy which is why markets are nervous. If anyone wants to buy this stock I would stagger your orders across several price points rather than take a big position all at once. This is May so many people are taking time off and especially moving money out of the market before Mondays election.