RE:RE:bag holderI don't see 2x or 3x this year. They need to bring AISC down on their producing mines and their past record of performance has not been great. Tax loss selling pressure will be heavy this fall. If you like Alio, I would wait to buy then. You might miss on an opportunity for a buyout but I see that as unlikely. I don't think other gold companies are willing to risk buying ALO until they can prove their existing assets work.
Raymond James outlook when they severely downgraded the stock on Aug 23rd was grim.
2018-08-23 07:35 ET - In the News
The Globe and Mail reports in its Thursday, Aug. 23, edition that Raymond James analyst Tara Hassan cut Alio Gold ($1) to "underperform" from "market perform" and slashed her target price from $4.50 to $1, saying the company's operating challenges, debt and declining gold prices push the company "on to a tightrope." The Globe's David Milstead writes in the Eye On Equities column that the junior miner has a mine and a development project in Mexico and a mine in Nevada. The company has made "the right call," to reduce mining rates at its Mexican mine, Ms. Hassan believes, but it will reduce cash flow over an unknown period, by an unknown amount. Meanwhile, its Nevada mine has high production costs. Her target price is based on a blend of net asset value and projected cash flow, both estimates of which she has reduced. Her multiples are lower than Alio's peers to reflect higher costs and operating challenges, she says. The Globe reported on Nov. 22, 2017, that Ms. Hassan cut Alio to "underperform" from "outperform." The shares were then worth about $4. The Globe reported on Marc 26, 2018, that Ms. Hassan hiked Alio to "market perform" from "underperform." The shares were then worth $2.66.