i'm picking the bottom

We are in a very ugly bear market with the Euro zone about to implode and yet CGT has held its ground very well. It is my feeling that the desperate and the bed wetters have sold, leaving behind investors that can see the true value of CGT.

I am a not a TA sort of guy. I just reckon that CGT is grossly under valued considering we will be pouring gold in September. CGT is capitalised at $55M, yet we have $35M in the bank and expect to be earning $35M per annum from 50,000 oz pa production after production costs of $750 per oz.

Ok, so we don't have a 30 year reserve but even four years of production yields a total worth of $175M or more than three times the current capitalisation. We have news from the company that recent drilling indicates that ore reserves could well be extended and $35M available for exploration provides a lot of potential.

As a publicity stunt I think the company should offer to its share holders, at cost, polished gold tablets, about domino size, and limited to what can be made from the first pouring in September (or who cares if it is October or even December).

So, I reckon 3.3 cents was the bottom regardless of what happens in the US and Europe. If the worst happens then gold is a safe haven. If things pick up then positive sentiment will kick in. If I am wrong and it goes below 3.3 cents then I am still not selling.