Tough decision. I hold a lot more AGM then GUL but that doesn't really mean much as you have to look at the price today and GUL is a lot cheaper.
I would go for AGM over GUL for the following reasons. Maybe these reasons have some commonality with your strategies maybe not.
* The liquidity issue. AGM has it all over GUL in this respect.
* The pure Nickel play. Both are pure Nickel plays at the moment (OK I know about the St Ives property) but with GUL seeking to raise funds for "other projects", this might change in the future. Maybe they could put money into another type of mining operation, i.e gold , copper etc or maybe they could remain pure nickel but get into bed with another company. What they will do with the funds if and when they raise them creates a bit of uncertainty. I want to be overweight in Nickel at the moment so with AGM the strategy is laid out, all that remains to be seen is how funds will be raised.
* The size of Allegiance gives it the opportunity to gain a bit of institutional interest when it gets closer to mining. This gives me a bit more confidence in the long term. I do tend to be a bit of a long term player rather then an active trader.
@ On the GUL side it is obviously way undervalued. As I have said before it is discounted for liquidity reasons and probably the size of the company but people won't ignore this undervaluation forever.
I don't think what Carls is saying is that holding GUL you get access to the placement in AGM. This would not be the case and in any case all the applications have closed. I think what Carls is saying is secure your shares in the plan (if you applied and were eligible), sell your holding at a high price now. Remembering the shares you will be issued will be at a discount and put the funds into GUL - which is undervalued. It is a good strategy (if i understand Carls correctly) for a small holder where the number of shares you get in the placement offer is higher or similar to the number of shares you were already holding.
AGM Price at posting:
0.0¢ Sentiment: None Disclosure: Held
