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AMREP Corp T.AXR


Primary Symbol: AXR

AMREP Corporation, through its subsidiaries, is a holder of land, developer of real estate and homebuilder in New Mexico. The Company operates through two business segments: land development and homebuilding. The land development segment offers for sale both developed and undeveloped real property to national, regional and local homebuilders, commercial and industrial property developers and others. Activities conducted or arranged by the Company include land and site planning, obtaining governmental and environmental approvals (entitlements), installing utilities and storm drains, ensuring the availability of water service, building or improving roads necessary for land development and constructing community amenities. The homebuilding segment offers a variety of home floor plans and elevations at different prices and with varying levels of options and amenities to meet the needs of homebuyers. The Company focuses on selling single-family detached and attached homes.


NYSE:AXR - Post by User

Bullboard Posts
Comment by zentrarianNZon Jan 23, 2015 4:19pm
139 Views
Post# 23357503

RE:AXR to Gold

RE:AXR to GoldThanks, goferman, good work. However, while AXR is highly undervalued by any reasonable metric,  I'm not sure those price comparisons - while encouraging - are especially relevant. Miners are usually the first to fall and the last to recover, and the GSR has expanded considerably since those price ratios were applicable. Alexco's situation - or at least the perception of it - is also different now. Until this week's rally, one could have assumed the market had left it for dead. But - as I mentioned in my previous post - we can see now that is definitely NOT the case.

What will really propel AXR up, of course, is a (consistently) higher silver price. (BTW, if this is accompanied by a gradual retreat of the inflated GSR, as I expect will be the case, it may not take an especially high gold price to make that happen.) And especially, a reopening of the mill, backed by a solid business plan that takes advantage of lower oil costs, interim optimizing of the mill, and a mix of ore grades that generates a sustainable profit without killing the golden goose to gain a few silver eggs.

I suspect the latter of these options is not a big worry, as evidenced by the (now very wise-looking) decision to temporarily shut down rather than high-grade the mine. Imagine how much cash AXR could generate if (when?) we return to $40-plus silver!
Bullboard Posts