ASR - Chart, page-344

Novicechap, I can say that I have no affiliation whatsoever with management who at times have missed the opportunity which I was not happy about but I have not let that deter me from making the best of the opportunities I have been dealt. From my perspective, being hard nosed, trying to take emotion out of decisions based on economics, I look at the TA to plan entry and exit, and try to make rational decisions based on that; but as a corollary, my long term view is that I think that the geology in ASR tenements is good for gold, and a lot of it, as Mode has elaborated on in great detail in the past. But neither of us as holders, like anybody else had any impact on how ASR planning and delivery worked in the past. I also see that if ASR explorations follows the models Mode has suggested, neighbouring gold miners will move.

In the meantime, the cold reality, is that ASR has been a bonanza for some, from a trading perspective for people who could read the tape, which is so obvious from the charts I have posted. There was nearly 300% in it. People talking stocks down when they hold is always a folly because it plays into the hands of the smarter money and they reduce their capital for an alternative use. It seems smart money have a different perspective on the fundamental value in the tenements. They merely enter at a cheap price and play the psychology game to incite others to dump with some role playing posts. The top 20 has a few new players and the have been solid top-ups from existing holders. If the sell side stacks, someone will be on the buy side based on perceived value.

Now that ASR has bottomed out, a growth stage may occur because of new discovery and a change at the top. Firstly, ASR has discovered REEs which a world renown expert in REES is very excited about and is acting as the consultant in Professor Collerson. Such a person would not put his name to a dud. Secondly, ASR has a new MD who actually has hands on experience in mine development and is not a paper pusher. The very hole ASR needed to fill for a reality check. I think the ship will be back on the course with a real skipper at the helm.

What I still believe, is that the fundamental value of gold flows from the geological setting as Mode has attested to many times. It is slated for further exploration and the rising price of gold assists that cause. As predominantly a position trader (who trades swings and intraday to reduce average cost), it is important to buy value from a fundamental perspective. To me at these prices value lies in the ground, in a speculative stock where decisions should be made based on risk versus reward.

When you buy a stock, you instantly become a risk manager. Don't disregard the tape, because the bottom line is what counts.