Now that the ' labour ' ' delivery ' and post birth euphoria for Big RED is over, it's time to leave behind old ideas, inappropriate nostrums, and unrealistic expectations. Can we please leave all that ridiculous quibbling and squabbling behind, along with Old RED and SLR issues and start afresh ??
The current SP appears oversold, but what the current SP should be, with the current POG and RED's current production. is not yet established by the market .... speculators have left, and the remaining large shareholders are institutional in nature and will have different expectations ... more stability, more clear cut emphasis on the bottom line for shareholders .... like NST ?
So, lets hope the new MD and BOD come up with an impressive business plan that underlies RED's profitability, longevity, organic growth potential, as well as its capacity to attract synergistic M&A .... its a tall order, and there are plenty of competent competitors in the same space. If RED can remain very profitable at A$3000, will it thrive and be supported at or above current levels ?? The big sell of Big RED is about to begin - first with the ASX, and then off to America's big gold conference circuit .... I suspect big gains. and major M&A, are not in prospect and that 49c will remain the peak for some considerable time.
For traders, buying in the mid 30's should be sound buying, and now I would rank RED a "Strong BUY" .... consensus target 50c ... assuming the POG remains in the profit zone, and the market doesn't fracture.
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