Post by
PhaTCaT007 on Jan 17, 2009 12:31pm
Valuation of a junior.. but is Producing!
Good day all,
I have been watching this stock for a long time now, but only bought my position a couple months back. I bought in @ 0.15 when it was still declining thinking it could not go any lower. When it hit 0.06, I recommended it to my friends and they bought positions at that price. Needless to say, they are now quite happy with me seeing as they are up 500%...
Any valuation model used on this stock shows that it is severely undervalued. The valuation is that of a Junior Explorer with only property and barely any exploration done. This stock however trades on the TSX, not the Venture and is producing a significant quantity of gold. Revenue will only increase in the coming years. What I told my friends is buy a large position and wait at least two years. This will return in spades.
The volume has been increasing over the last two months and this stock has bounced back much more than any other I own. I am now up 100% and that is more than I can say about any other stock I own right now...
What had placed this stock in such a position was the geo-political risk associated with doing business in such places as Sudan, Cote D'Ivore and Argentina. When Australia comes onboard, the risk level for this stock decreases significantly. The specific area of Sudan where they are operating is no where near Darfur and they are not affected by the same problems as the rest of the country. The area they are in is relatively quite safe.
Marketing will be a big thing in the coming months and years. Now that they are producing, marketing must be a proportional part of they expenditures. They are currently considering their options with regards to the best way forward to maximize the exposure they get.
Lots of good things to come with this company. Think of this one as a long term investment since any money you put in will return multiples in 1-2 year time frame and that is being increadibly conservative.
Watch and Shoot
PhatCaT
Comment by
PhaTCaT007 on Jan 20, 2009 4:10pm
Another solid day among the bloodshed in global markets. Turns out social mood is still declining as socionomics predicts. Gold will eventually outperform, gold shares will rise in the long run and this stock will soar to new all time highs faster than anyone can think.PhaTCaT