LSA

http://www.proactiveinvestors.com.au/companies/news/22207/lachlan-stars-gold-intersections-continue-from-two-separate-deposits-at-the-cmd-mine-in-chile-22207.html

Sometimes, I get people asking me how do they invest in the stock market. And harder still, which stock do they invest in. Here is an example of very basic arithmetic.

LSA is worth AUD$54 million on the market at 97c per share. Last Sept quarter, it generated AUD$4 million in profit. You can extrapolate that to $16 million a year with a 40,000 oz gold produced annually, and unhedged. The PE ratio should be under 4. Next year, the management said that it will be increased to 75,000 oz Au per year and expect the cost of production to fall. AND they are expecting more hits with their exploration. 5000m have already been drilled; waiting for laboratory analysis. And another 3000m more drilling to be done.

Would anyone buy LSA? Most of my few current readers have a profession and a tertiary qualification and won't even look at LSA. What hope has a nurse? I even wrote to tell one guy to buy at 71c.... just recently when he asked which stock should he put his money in. Some idiots were dumping their LSA shares that day.