ABU
Picked up a small parcel at 2.8c yesterday. I am glad to see the non-executive chairman spending $60,000 if his own money to buy at 3c. That means I could have bought the same number of shares for $56,000. This is decent parcel of shares for such a small stock as ABU. Eventually, I expect the market to notice if it continues to find more rich gold veins. Of course, if the price of gold dips further, then it can be cactus!
At the current POG, most gold stocks are going to suffer horribly. But it cannot go on forever because gold mines will close curtailing the supply side.
posted by Club Mulgoa @ 3:20 AM
3 Comments:
I don't get why ABU has been so heavily sold, despite POG going south. It is only a month or two until trial mining and the cost base is extremely low - high grade, shallow open pit and small (cheap) gravity plant. I guess it's suffering as being pre production and small market cap. 2 directors buying means I will follow suit before the trial mining starts. Plenty of selling still so will wait a bit longer - but how long?
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I am very tight with cash because next month, my super has to do some payout (pension to us!). Otherwise, at 2.5c, I was going to buy more.
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