end of sell-off?, page-2

Cheers to all those who provide their thoughts on AAG and WGR.

I have been a keen reader of the commentary, much of which is very detailed and knowledgeable in content. I'm a long-term holder of AAG and must admit that despite being a glass half full person, it is very easy to get despondent with the share price performance. This despondence comes in the face of resource upgrades, a rising gold price as well as the considered thoughts of broking houses regarding the companies in question. A broking house report on AAG's website refers to a 12 month share price target of 45c (report posted 10.6.2010). A similar report on WGR's website refers to a 12 month price of 63c (posted 7.4.2010). Neither of the share prices, however, are anywhere near these target prices. What has happened, or more to the point hasn't!

In the bidders statement, reference is made to a number of selected gold explorers. I have had a look at the 6 month share price performance of 10 of these companies. Presumably they are all doing similar things to AAG and WGR (have not investigated). In the majority of instances the share prices of these companies have enjoyed considerable appreciation. In the same period, the share price of both AAG and WGR has deteriorated, significantly in the case of WGR. My questions to contributors are these:

Why do you think there has been a synonymous downward move in the share price of both companies over the past 6 months despite what is happening elsewhere in the sector? and
Do you agree with WGR's belief that there will be a significant share price re-rating upon amalgamation of both the two companies?

Thank you in anticipation,

AK