Sons of Gwalia has been hit rather excessively over their...

Sons of Gwalia has been hit rather excessively over their reduced forecasts but looks like it could recover strongly.

The first positive is the improving price of gold.

Secondly, the company has slowed it's tantalium production so as to not oversupply the market but also to be more profitable. Tantalium is a mineral used in the manufacture of computer chips and SGW control about 60 % of the current supply. Any improvement in world economies will flow into increased computer manufacture.

Thirdly, the company has recently sold it's mineral sands investment to Bemax for cash and shares.

I feel that this company could quickly move back to it's trading range around $4.00 and has a few strings in it's bow to give this support.

I picked up a few today and if things go to plan I will increase my holding.

Have a look and see what you think but as always, DYOR.

Regards M.