Chart request - RRL, page-46

I would say a long term holder but that depends upon the prospects of RRL. You will see from other stocks I have commented upon that gold is a sector that I take an interest in as well as nuclear/uranium. I am a great believer in the fundamentals of a company which are not just the numbers but also the quality of management and what the company actually produces and their expertise. You will know from other threads that I look at a company from the perspective of an engineer and tend to be analytical (i.e attempt to put numbers to a problem).

Not a great believer in technicals for the long term prospects of a company but do use them as entry and exit points.

My view on RRL is that it got canned due to a market perspective that they overpaid for Tropicana but that value is something to be judged in the eye of the beholder. IMO RRL's poor hedge position made Tropicana more valuable to them than others and from their perspective was not the terrible deal seen by the market. Still think Mc Philly will come through for them in time and that will place RRL as about 700kozs producer where average EV/EBITDA ratios are about 7.8 - RRL currently has an EV/EBITDA ratio of about 4.6 but they require cover for their poor hedge position to be rated alongside peers at ~700kozs production rate (i.e EVN - 9.8)