fund managers view, page-28

Munchy

I first bought SAR in around March last year at 55 cents

Goldie's at the time were heading down but SAR was solid
Around 55 cents

I ended up selling at break even to buy PRU as it had dropped to
Under $2.20

I later sold out of PRU at $2.72

Around August I bought SAR again at 37 cents
I bought again at 42 cents and again at 44 cents

I sold some at 52 cents and some at 55 cents

Over the last 3 months I have bought and sold often
Sometimes at a loss if I feel the SP can go lower

This time I got caught with a lot more than I would have liked
But I have continued to buy for 2 reasons

I have absolute faith in SAR and it's ability to make profits at
$1400

This doesn't show up at the moment because the company wants to
Grow into a mid cap producer

Management have done a great job

The other reason is that I believe 34 cents is an absolute bottom
I plan on getting into a more liquid position pretty quick because
The price fluctuates a fair bit

Come November and gold will be over $1800 so whatever the SP
Is over the next couple of months
The SP will hit 55 cents before then

Anyone buying under 40 cents will always be able to sell over 40 cents

If anyone doesn't believe the SP won't go above 40 cents fast
Should not bother holding

I think I will be selling some at 40 cents this week

It isn't that I would love to hold

It is just because of the manipulation that is going on
And there may be a chance of buying cheap again

To me a fair price for SAR is 70 cents with gold at $1600

Next year with the new plant $1 would be fair
But I would be hoping The POG will be higher than $1600

I hope this explains my situation

Imoo