GREY:AVGCF - Post by User
Post by
lowpickron Aug 07, 2012 10:57pm
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Post# 20192526
BARGAIN
BARGAIN Endeavour has done a pretty good job buying troubled assets and it looks like they've done it again. Sure there are still troubles in Mali but that will pass.
Going back to the start of 2011 (will not consider prior to that as Endeavour was still changing there business from a merchant bank) the ratio AVR:EDV has ranged from 1.10 to a recent low below .200. During 2011 the range was 1.10 to .50. The start of 2012 it was .640, hit .750 prior the the leapday massacre, drifted down then spiked lower to .450 on the Mali Coup news, dipped more and recovered some to end at .44 before the the Tabakoto mill expansion suspension. After the suspension the ratio has been below that of the offer (.365) in a range of .300 to .200, closing at .233 today. Looking just at today's prices some may say that Endeavour is paying a big premium but I feel they are once again buying low. The sun will shine once again in Mali and Endeavour has the cash to make things work. Unfortunately for AVR shareholders though management once again appear to be putting their own interests first.