Took a punt and bought some of these today....think it's a reasonable punt at these levels for the following reasons
1. Management - history and experience in the region and success with other asx listed company (Ampella)
2. Nearology - immediately west of Perseus, and close to Resolute
3. Drilling to commence in 1st Q 2011
4. Current stock overhang from .5c (1/2 cent) placement represents a buying opportunity (in my view). Eventually the sellers will dry up (make their 100% profit - good luck to them) and a new base will form around current levels.
Negatives include the following
1. Political unrest in Cote d Ivoire - uncertainty at the moment, but as long as it is resolved may represent a short term buying opportunity. If it drags on and gets ugly we may see further weakness.
2. Stock overhang from placement - may take a while to clear so short term gains may not occur.
3. Shares on issue (980,000,000) post deal is a fair few. Should provide good liquidity though and share consolidation may happen??
Of course, if the due diligence isn't satisfactory and the option lapses we are back to square one...almost.
Worth a punt in my view.
Regards
doyle
AOP Price at posting:
39.0¢ Sentiment: Buy Disclosure: Held
