Considering AMX was $3.42 in December 2010 with gold around US$1350 - US$1400 we can see how undervalued AMX has become.
Since then gold resources have increased another 50% from the February 2011 update with further substantial increases expected this year.
If there's a gold stock that is a bet to nothing in this market for new investors at this point in time it has to be AMX imo.
1. You either get a takeover bid in coming months and a quick, substantial premium to your entry price and so can use the funds to purchase another undervalued goldie. In addition, any successful bid will have to be way, way above current prices for Management to accept as Management have pointed out they are cashed up and do not need to be taken over to get on with the job.
or
2. Takeover approaches are rejected by Management as being too low and the AMX price starts its recovery to $3.42 and then on to higher prices in the course of this gold bull imo.
AMX is already at a very unjustifiably, low ball valuation imo. Barring a collapse in gold - very unlikely imo - AMX is unlikely to decline much below current prices, if at all, because of the takeover interest, which should become red hot if AMX stayed below $1.00 imo.
AMX Price at posting:
$1.01 Sentiment: Hold Disclosure: Held
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