Club Mulgoa

Monday, August 01, 2011

ABU

When this company makes an announcement, the market is often indifferent or with disdain. That is what happened to today. POG fell a little today but it is still over USD$1600 per oz.

While the grade is not wow but the thickness and the existing of one big lump do not seem to sway investors. Maybe there is something some sellers know that I don't. Well, wait another year and see what happens to ABU share price. I keep calling others idiotic sellers but maybe they will have the last laugh. But I like to think simple arithmetic principles will prevail. If you find more gold, your company market capitalization should increase.... not fall!

It is also true that short term, the market does not operate on logic. My average buy price is 3.1c so at 4.6c, I am "contented".

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