GREY:ADEXF - Post by User
Comment by
greenandgoldon Sep 07, 2011 12:00pm
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Post# 19018165
RE: RE: Where are the Analysts
RE: RE: Where are the AnalystsI'm not that concerned with the stock price. Of course I understand good companies in the resources sector go on sale regularly.
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I do think there's a disconnect between management's story that AXI is going to be in production by 2014/15, and the fact that almost no analysts from any of the major brokerage and investment houses cover this stock. There's also complete silence from the newsletters and other stock promoters. It leads me to conclude that a lot of investment professionals are not convinced by this story.
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Could AXI defy the odds? Of course. But most investors want lay-ups, mining projects that just have to work (unless the world blows up).
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AXI is only a value play if you're absolutely sure it's going into production. If it fails to go into production, and a lot of the more speculative iron ore juniors won't in this cycle, AXI's stock is worth 5% or 10% of its current market cap.