daytrades december 10 morning ..., page-38

This is a copy of my most recent post on the short term trading forum which may be of interest to some Daytraders.
Post:
This year I have been fortunate enough to find LOMOAs & EQX before the masses arrived & both have proved to deliver great multi baggers. Whilst I dont believe AZH will be anywhere like either of the 2 stocks mentioned above, I do believe it is worthy of research as a potential investment if you deal in the speculative high risk area of the mining market.
My source of materials included ASX announcements & the BRR on 10/9/2010.
Strengths:
1. At 30th September AZH held cash of $4.2m.
2. Dominic OSullivan the MD not only assembled Guyana land package but resides there and has a wealth of operating expense in Guyana.
3. Capital raising has seen strong support from the likes of Acorn Capital, BT Australia, Macquarie Bank Ltd & the Eye Investment Fund. (Refer 2010 Annual Report, Page 2)
4. Guyana & West Africa look to be geologically very similar, (refer ancient history) so AZH hold a large tenement position that could easily produce similar results to Africa.
5. Over the last few weeks it looks like AZH has been accumulated around the 17-18 cent mark, but late yesterday this buying started to chase the stock above 20 cents, so it could easily be the start of a nice breakout.
Opportunities:
1. ASX announcement September 30th refers to expected maiden JORC for Hicks in January 2011, so not long to wait.
2. Sept Quarterly shows auger sampling extending Hicks Prospect to both the northwest & southwest for an aggregate strike of 1.5km.
3. Auger sampling also revealed 700 metre long anomalous zone at recently acquired Smarts Prospect, also Kaburi Prospect revealed an anomaly of at least 1.5km strike and approximately 500 metres @ greater than 1g/t gold at surface.
4. Independent consultants have remodeled the deposit using historic data and the results have indicated significant potential for expansion of the existing mineralization within the area of the current historic resource.
5. Hold 10% of Guyana Shield-carbon copy of West Africa (refer Dominic OSullivan BRR Interview 10/9/2010). Starting historic JORC of about 300,000 ozs. This shield hosts numerous world class ( greater than 3 million ounce deposits)
6. Expanding land position along Guyana Shield.
7. Also holds the Amakura Uranium Project (4,000km) in the northwest of Guyana which exhibits several large high intensity airborne radiometrics (refer Annual Report Page 12)
8. Would expect enterprise value per resource oz. of at least $150 per oz. (African companies around $200 plus Crefer PIR November Presentation slide 16). So a 1 million oz deposit would see AZH being capable of reaching more than double the current price.
9. The ASX announcement from AZH on 17th November 2010, included the following comments, The second hole, HRC\002, was drilled as a scissor hole to intersect the main Hicks zone mineralisation that HRC\001 was targeting. It intersected 30m @ 7.68g/t Au from 54 - 84m, including 1m @ 30.03 g/t Au and 1m @ 21.76 g/t Au. The diagram of where this drill result occurred showed the company is awaiting drill holes on either side of this reported result.
Weaknesses:
1. Lack of drill rigs and difficult area to access (roads/rain).
2. Up until a few days ago there looked to be a large seller in the market at times, possibly placement stock being sold, hopefully they are finished so there is no more downward pressure on the share price. This seller tended to load up big quantities on the open, today's screen looks very clean at this stage.
Conclusion: AZH is worth some research if junior gold explorers in South America fit your investment profile. Whilst I try & endeavour to post accurate information I take no responsible for any mistakes & all investors should do their own research on these highly speculative stocks because the risks are always high.
If this post is of any use feel free to give it the thumbs up or vice versa if of no use.
Regards
Buffett
PS This stock may require a little patience but certainly in a very interesting area.