why abu, page-16

vendor:

POG is of course a mystery but until we see a solid change in trend it's a brave call to say we've hit a base.

ABU up off a base on but on low volumes so I'd guess a pull back and we'll see if we break the low of 2.2, at the moment of course it's a medium term downtrend so timing the short term moves is only for the brave. We really need to see the first wave or two of higher lows for TA people to feel that the company has turned a corner.

I know you're a TA person but in the mean time, on the ground, the company is hitting its milestones. I think even with TA it's worth having a feel for whether the trend is due to intrinsic issues (eg rubbish management) or extrinsic issues (price of gold, sentiment in the sector). If for no other reason that there's no point in having a company with rubbish management in your watchlist even if the trend is going up.

There are some companies that I wouldn't touch with a bargepole even if they were in a solid uptrend because of a fear that the company will be "found out" and the price will be obliterated overnight.

It will be interesting to see how ABU tracks when it does produce.