re: jp morgan agrees with you vidi Thanks Tony.
Yes am in acceptance of Morgan's comments.
Of course the resource boom will not collapse overnight.
And hasn't
Markets are often driven by fear and greed ----
The story behind the 30% slump?
Bounce back is on the cards.
The suggestion that price of copper could halve - taking five years to do so - is perhaps compatible with Morgan's analysis.
Resources 30% undervalued?
Probably!
The recent 30% decline in index was hardly rational.
One must remember that not all resource companies are the same.
Anvil share price is certainly over 30% undervalued.
Hardman jumped 73 cents to $2.04 cents yesterday! On the announcement of a takeover move.
Media highlighted ---- "Investor distate for offshore risk sends another company overseas".
My belief is that Anvil share price is well below valuation - in excess of the 30% stipulated by Morgan for resourse stocks.
The reason for this undervaluation has been espoused, moaned about and groaned about so regularly on this forum that further comment is unnecessary.
So we just accept the inevitable.
Can't fight it.
It is likely that a take over bid for Anvil would need to be well over $2.00 share for management to take it seriously.
And then reject it.
Perhaps a bubble has burst with some resourse stocks in some areas --- rather than the "boom is over".
Anvil price stability last week or so is a good sign.
Should next quarterly report - due in about 5 weeks time - reveal increasing profits (remember a week of production was missed last quarter --- 6%?) share price should increase.
New broker reports and recommendations on Anvil are also likely in the coming weeks.
Will be positive.
As hopefully will the election outcomes in the Congo.
Is likely that good days are ahead.
But one must not get too optimistic with Anvil.
Just quietly confident --- perhaps.
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