I'm looking for you to tell us what you think fair value is and the reason for that, then one can have a reasonable discussion on the matter. This is not a pissing contest, what I have pointed out is the Company has had a huge run in the last year or two , nothing including gold goes up in a straight line .
I hold simply because I believe the Company and Gold has a good future and would sell if I thought otherwise, how good a future can only be known over time.
Generally two things drive a Companies shareprice , sector sentiment and Company profitability. Most of the gains for RED in more recent times have been gold sentiment driven now we have reach the performance stage and that's yet to be proven.
So do I think RED is fair value at the moment, well based on current profitability and with considerable exploration and development spending ahead it is probably overvalued, do I think its undervalued based on future potential , yes but the future is ahead and we are dealing with now..
One thing is reasonably certain , if gold continues to rise the shareprice will follow but not necessarily in unison and will only continue to do so if it makes money.
At the moment RED is a small operation with a short mine life but is in the proess of changing that, its what you would expect from a mining company..they are not in the business of managing the shareprice day to day .
RED's shareprice has out performed gold in % terms by a considerable margin but the larger RED's MC grows the harder it is to rise in % terms...
So we await your reasoned thoughts on the issue.
Cheers Whisky
(20min delay)