Fundamental:
- Still heavily undervalued compared to peers (e.g. Semafo)
- Safe jurisdiction (NZ),
Proven shareholderfriendly management,
no dilution (except for removing hedges early 2010),
recently removed hedges so good earnings ahead,
3 producing mines, so limited risk when one of the mines needs to halt,
solid amount of ounces in ground,
Cash cost of about (I thought) 500 usd
upside of selling/bringing into production Didipio (Philipinnes, less safer country),
enough cash generating to make acquisition move in future.
Chart:
- Chart has been showing steep and solid uptrend since Oct 2009.
- Stockprice looks to be at bottom of trend zone, ready to re-rise.
Currently on TSE 3.01 cad (= 3,32 aud)
Currently on ASX 3.12 aud (discount of 6%!!)
About 2 months ago the stock also was undervalued on ASX vs TSE.
After that there was a peak in the stock of 3.88 aud vs 3,47 cad (=3,94 aud)
So, under(/over)value on ASX appears to be a temporary situation
After that there was a peak in the stock of 3.88 aud vs 3,47 cad (=3,94 aud)
So, under(/over)value on ASX appears to be a temporary situation
Therefore:
Buy july 12th 2500 euro (= 1150 pcs)
@ 3,16 aud, else in the afternoon at 3,05 cad
Sell limit: 4,20 aud / 3,8 cad
Private note: Sell after sell of stock the profit in Aud back to euro (to keep currency basket in proportion)
19/7: Update:
ReplyDeleteDespite the price which is in my target range again, I decided to sell instead of buy more.
This had nothing to do with OGC itself, but more with the broad markets:
Especially the big drops in the SSEC and Baltic Dry index with no rebound (opposed to US/CAD/EUR stocks last weeks), gave me a bit feeling about the broad market.
As Golds stocks are unfortunately still closely correlated to the broad markets I decided to raise cash and not let a 35% profit slip away (or at least partially):
I already owned a bunch of OGC which I bought at 2.18 CAD average.
I sold 22% today, but am looking to add more OGC as soon as I see the Baltic dry and Shanghai stock exhange turning.