Sulliden Gold Corporation Ltd T.SUE.WT

Major Buying Opportunity

[dtrader3]

The recent sell off of SUE has been completely unwarranted. Depsite gold price still holding strong over $1400/oz and continuous strong drill results the stock has been under pressure as a result of the ongoing elections in Peru.

"Left-wing" candidate Humula has surprisingly surged into the lead based on latest polls (whether they are accurate is another question) to approximately 20-22% with Tolthe other right wing (market friendly)  candidates sharing the remaining 78-80% more or less equally. This has caused all stocks associated with Peru to fall. But what investors don't seem to understand is that this has happened before. In 2006, Humala won the first round of the elections with 31% of the vote. He lost decisively in the second round to current outgoing president Alan Garcia (who obtained 24% of the vote in round 1) by a 47-53% margin. So whether Humula wins the first round or not is most likely just going to delay the inevitable as the right wing voters which are approximately 80% of the current polls will consolidate their vote agianst whichever market friendly candidate makes it to the second round. Then again Humula might not even make it to the 2nd round as the "race" is very tight between the other candidates. 

So with all of this said, IMO I think this has presented a strong buying opportunity for Peru stocks especially SUE which has sold off in the last couple days. We'll see what happens as the election is only 2 weeks away.

[play_n_lay]

thanks for the info. I was perplexed to say the least by the recent fall in the SP. Didnt realize there was an election coming. I should probably do some more DD on SUE if I am this in the dark. They are presently a small position of my holding but I am looking at this pull back as a buying oppertunitiy. Especially considering the positive feedback they recieve from AAB.GLTA

[dtrader3]

No problem. It seems the market is exaggerating it a bit. Other than these "headline" items SUE is a great company and a better stock. Cheap, many catalysts coming, buyout candidate, etc.

[joe2010]

How would a win for "left-wing" candidate Ollanta Humala effect the progress for Sulliden?

[joe2010]

I think this article explains the problem : A surge in demand forraw minerals is having a ripple effect throughout Latin America:governments across the region are scrambling to take advantage of thewindfall by mining companies.Nowhere is the debate as intense as in Peru, where the government inFebruary reduced the sales tax by one percentage point – to 18% – on theexpectation of additional revenue

[Auric]

Thank you Joe2010. I was not aware of the election in Peru. Incidentally, we had a guest 2 weeks ago who was born in Peru and I mentioned sulliden but did not know anything about it nor mentioned there was an election going on. We will just have to bear the uncertainty.

[joe2010]

Your welcome , But I think dtrader3 must take credit in posting the info on the Peru elections.He was also correct in stating that Ollanta Humala would not be a positive for mining companies if he wins. But he still has not won and may not even win. Even if he does win it will take time before anything get's implemented . Until then I think SUE is an excellent buy and there resource is still