Some positivity
Hello everyone!
This year the AFA stock price of AFA has not made any of us stock holders happy and lately the stock price has plunged to levels that we have not seen before. Maybe I can provide some positivity in this dark hour.
AFA is presently valued at 0.03 per share but in my opinion and I probably share this opinion with a lot of you – that represents a huge undervaluation. Let’s make a short list of the assets of AFA:
1. Haib copper mine. Valued at 15 million dollars, where a dividend valued to 12 million dollars is planned. With 240 million shares outstanding this represents a value of about 0.05 dollars per share. Also notice that this valuation is made with a conservative copper price so the value may in fact be higher.
2. Block J. Only counting the 78.000 carats in the higher grade zone, with an operating profit of 164 dollars per carat would boil down to 0.05 dollars per share. With further sampling which is planned to take place after the EPL 3403 sampling the diamond amount (and more importantly the diamond concentration) will very likely increase – in fact AFA believe that the high grade area extend to the northern end of the block for over 20 kilometers!
3. EPL 3403. This is actually the big one. It will cost us 65 million shares, but at this price it sure is a bargain. When the sampling results were revealed in May, I thought they were great, and the stock market agreed with me, well at least for half an hour. I was amazed to see the stock price plunge but I understood that many shareholders had no clue of what was a great result and only followed the flow of the stock price. I still think the results are great and if you study the diamond exploration model found on the AFA website I think you’ll agree with me. It is important to understand that we are at an early stage, and that the diamond amount will increase for every round of sampling. It is impossible to make an evaluation of EPL 3403 at this stage, but if the results keep coming in as good as the initial one, we will be some VERY happy shareholders in a year or two.
I presently own 1.400.000 shares, really tried to get some more at the crazy level of 0.025 but had to settle for 100.000 at 0.03. In the end of the year when people are looking for tax deductions already battered stocks will take another beating. But this is an opportunity for us longs, when people “have” to sell, they will sell cheap. They will probably want to restore their position in the beginning of the next year, but then they will not get their shares cheap from me – that’s for sure!
In conclusion, this stock will not stay at these crazy levels for long. When news about samplings and dividends come the stock price will come closer to the company’s real value (price target calculated to 0.26$ by RB Milestone Group) and you will probably hate yourselves for not buying at these levels.
Merry Christmas!
P.S. We all know (and love?) our forum troll. I have said before that everyone should put him on ignore because people like that feed on peoples misery and actually enjoy when people get upset at their posts. If the person had legitimate criticism I would welcome it, but as we have seen (just check the history of posts) his posts are filled with misinformation. I can’t really tell if it is just incompetence or actual malice. Sure – there is a point to deconstruct his feeble arguments to make sure that other investors do not get scared, but do this in another post not addressed to him. Leave him and his ramblings to himself... maybe just maybe the troll with starve to death.