ABU
While I am tempted to sell as the share price has moved up again, it is more logical to accumulate. That is my long term strategy but in the short term, ABU has been a good trading stock for those adventurous enough.
It has 1.67 million oz of gold resource and worth around $90-100 million today. Hence, from an EV/AuOz value, it is pretty cheap. Best is the fact that the exploration has not been completed yet. When you look at the grades and thickness, and the fact that the "single" deposit comes up to the surface, you wonder why ABU is still so cheap. It is not in funny country but in Tanami Desert, NT.
One smart reader of mine has been making a trading profit out of ABU and re-bought it. I have had a few cups of coffee, with compliments from him.
http://imagesignal.comsec.com.au/asxdata/20110322/pdf/01163977.pdf
posted by Club Mulgoa @ 9:49 PM
2 Comments:
Funny you mention this one today. Noticed a jump and was wondering whether or not to lock in another profit. Will prob hang on but will look for some others to let go - I'm itchy without some cash to scratch it!!
So far, ABU has been good for trading. But the grades, thickness and shallowness have been too good for its share price.
Post a Comment
<< Home