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Bullboard - Stock Discussion Forum American Bonanza Gold Corp ABGFF

GREY:ABGFF - Post Discussion

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Post by Combo9 on Sep 13, 2012 10:10am

I'm in

Bought in this morning. Looks way oversold after drifting on lack of news. Main points persuading me to buy now: -

1. Quarterly update is out on September 30th. Based on the timelines in their June updates and presentation, the new stopes should be more or less ready so an announcement of commercial production could be imminent.

2. The CFO/VP recently exercised 360k worth of options (August). Most of these are sub 20 cents, but one batch was exercised at 22 cents. He kept hold of all those shares rather than disposing for a quick profit -- a positive sign. (see: https://www.canadianinsider.com/node/7?ticker=BZA )

3. There have been no subsequent announcements of financing, suggesting they are cash flow positive.

3. The current market cap is fair even at pre-ramp-up rates of production.

4. Low cash costs. QE3 can only help but not necessary.

The main reservation I have about the company at this stage is it apparently isn't engaging with shareholders very well; however, they are delivering results and the questions being asked by shareholders are probably price sensitive anyway. I'm invested in another company where the CEO responds to e-mails within the hour, but the company's progress is slow. I know which I prefer.

all imho, gla
Comment by Combo9 on Sep 17, 2012 9:34am
And I'm out.  Bad trade in at .245 out at .24 for a small loss.  Was disappointed with the massive decrease in grade (0.27 down to 0.12 oz / tonne).  GLA.
Comment by Z06 on Sep 17, 2012 9:40am
Here we go, down to .19
Comment by Z06 on Sep 17, 2012 9:49am
If you sold out today @ .24, why did you sell under Anonymous??
Comment by herry on Sep 17, 2012 9:55am
hate to say it ,but i told you so,only if the management and PR dept did there job to promote this company then maybe we could have done a PP at a higher price,joke joke joke jim and brian are.see you all at the mid teens.herry
Comment by Combo9 on Sep 17, 2012 10:16am
Shares were held in street name.  Most online brokers do afaik.
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