Disco Stu
Thanks.
I also keep getting PVM and PMV mixed up, same goes with CGX/CGA whose shares I also hold. No doubt there are other dual listed companies causing the same to many investors/speculators/traders.
PMV has top rated management who are far ahead of AMX and an excellent reserve/resource. Unfortunately they are located in a high taxing country, which even Burkina Faso may become in the fullness of time once they have lured a lot of mining activity into their country.
The problem with being focused on one goldie is that one often has to wait a long time for it to gain the attention it deserves, and from around late March/early April the explorers get sold down to low levels. Some people have developed a bit of skill in judging when to exit the goldies and they often re-enter them in late June to late July when they have been given a really good belting. It can also happen to many producers, unless the management is seen as superior (eg RRL).
There is a bit of an annual cycle in the movement of the gold price which also impacts on our goldies. Coupled with that are a host of conditions affecting the sharemarket. Hence there is a heap of volatility that brings up good opportunities for traders/speculators (I am not a good one).
Therefore it is often best to just be out of the market and cashed up to buy into the goldies when they appear to have bottomed so long as you have done your research. People that reinvested in the better producing goldies in July have made excellent gains. The explorers for the most part tend to follow the recovery of the producers so long as they have a good story and especially if they are cashed up. AMX and GRY fall into that category as does PVM, but to a lesser extent in my view because of the higher tax rate recently imposed there and because PMV did not fall as far in percentage terms.
Anyway there should be plenty of gains for goldies going forward, and no doubt PMV will become another PRU in the fullness of time unless they are taken over.
On 19-8-12 Thegooch posted a very interesting chart on this thread of the lifecycle of goldies explaining how their shareprices fluctuate over time.
http://hotcopper.com.au/post_single.asp?fid=1&tid=1810606&msgid=10535076
loki
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