TSX:LSG.DB - Post by User
Post by
valueplaysonlyon Jul 27, 2012 7:59am
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Post# 20158071
my model is telling me
my model is telling me Just like I said NVA had no resistance to 4.50 a few days ago , this has no resistance to 1.25 to 1.30 mark. This is in my view a compelling valuation. You are getting a bona fide producer that was unduly punished because they were working out the bugs in the new mines. It appears the worse is behind them, and with pog increasing, production increasing , increased mineralization and safe jurisdiction premium, all the metrics point to a sustained break out. The stock has broken the downtrend line and according to my wave model once it breaks 1.30, the most significant gains will be realized. It should consolidate next at the 1.30 mark. However, if POG smashes thru the resistance level of 1645 on my model, this might not consolidate at that level and could shoot higher. It ias my preference that we consolidate at that mark because it is healthy for a sustained climb. However, if POG smashes through we might rise higher very quickly as many fund managers who are behind, as well as retail investors chase higher beta stocks.
I hold 435 000 shares at average price of 1.01.