re: gold bug ~ us$228m cashflows + head & shoulder
G'day Gold Bug, I know SFA about charting, mainly because I play the lower end resource stocks and can't for the life of me see how a using chart, which is akin to "driving forward by looking in the rear vision mirror", is going to give any signals/indications as to what's around the corner. How do these chartists allow for fluctuations in say, for example, the price of Zn, Au, Ag etc., etc., not to mention currency movements......and the list goes on. Stick to fundamentals and you'll keep an even keel...and at least you know you are in control of your research and decision making....The Buck Stops Here! HER is a relatively simple stock to understand, as long as you are looking for basic fundamentals to tell the story and are aware of the risk factors due to it's location. I have posted on this stock many times before and have pleaded for anyone to tell me what I'm missing and thus dampen my enthusiasm for HER. I confidently hold a lot of stock, so consequently have plenty at risk, and would welcome a critique of Herald telling me where I'm going wrong. The majority of the stock over the last 12 to 15 months has been accumulated in around the 54 to 55c range, and this level has proven to be difficult to breach. Fundamentally I regard Herald as the most undervalued mining stock on the market. It has been excessively discounted due to the political risk (Indonesia) factor, but this in turn has provided some cheap entry points for us to top up. The major placement yesterday to European Institutions @ 44c was a vote of confidence and this confidence was further emphasised by the fact that the placement will not entitle them to the 1:2 offer @ 1c per share in Corona Gold. (Placement is effective on August 25th, HER cum Corona entitlement is ruled off on Aug. 22nd). Holders must also remember that Macq. Bank are taking a placement in Corona at 15c for starters, so HER holders are risking 1c on a 1:2 basis. The company has been listed since 1948 and has been a gold producer off and on since 1983. They have paid dividends in the past, I think from memory over a six year period. Terry Allen is highly regarded in the mining scene as one who aims to look after shareholders. The fact he controls around 28% of the company obviously provides him with an incentive to do so. The placement announced yesterday, achieved with a couple of "simple" phone calls, was the first one they have done in around a decade and will see them through the bankable study.
Robbo, if you're reading this, hope you got set at 46c.
Regards to fellow owners, potential owners and those who just like to dream. Carl.
HER Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
