Sorry i've been a bit quiet, just been really busy at work (incl flying around the country) so haven't had any chance to post...probably wont do for sum time again. I have my BSG email list at work where i can keep those on it updated anyway, though hasn't been much to report on.
The half yearly was a bit of a non-event except to highlight the quality of BSGs underlying earnings...and cash flows! Yes much of the cash flow was due to issue, but then take into account the divvies paid out, and the cash flow is strongly positive. Much of cash outflow was on exploration and development, which is a HEALTHY expense.
The .75c divvy was a surprise in my opinion. Most research houses suggested that BSG should halt th divvy, but they proceeded with it. Obviously they are confident in their ability to debt finance the projects. A 1.5c divvy per year sounds pretty attractive to me. Not far off before they're franked either I would think.
BSG descent had NOTHING to do with charting the sotck price, it was driven by the FALL OFF IN GOLD PRICE. Charting still remains a GUESS in my book. The CROWD syndrom may have worked once when there were LESS LISTED STOCKS, but now there ARE TOO MANY STOCKS, hence less chartists per stock. CHARTING IS A MYTH. Why does it work in some cases...well easy. If you use stop losses, then of course ur going to come out on top. You limit the downside, but the upside it there. Use a trailing stop loss and u will win out, specially where a stock keep rising, because u never sell. BUT THI IS NOT CHARTING, ITS COMMON SENSE. And i would do it if i had the time, but i dont, so i have to stick to fundamentals.
Thats my opinion, love it or leave it.
PS: Take a look at ECU, been accumulating since 2c, some BIG things on the go here...check ECU board for further details...
PSS: The price weakness in bsg is no bother, im there long term. If it comes off, ill be happy, if it doesn,t theres not much i can lose with gold earnings continuing from Quartzite, and the divvies paying off my purchase price slowly.
Cdchi1
BSG Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
