SAR 0.00% $4.69 saracen mineral holdings limited

hot to trott !!

  1. 197 Posts.
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    A few things worth mentioning;

    The AUD has dropped markedly against the USD, for the first time this is not about the USD strength but the AUD's weakness because of lower interest rate expectations here. Usually all the currencies would drop against the USD but it's just the AUD this time. This is a good thing because it makes SAR even more profitable against the spot gold price in USD's and cheap to takeover by overseas hedge funds or other mid tier miners.

    Even if tapering did happen in the US, the interest rate differentials will be even greater between the AUD and the USD (weakening the AUD against the USD) thereby absorbing any fluctuations in the gold price. Although many pundits are now saying it's most likely bottomed. And the market has already priced in tapering at some point in the future. There are a lot of hidden positives here. Check this short clip from CNBC just out.. http://www.cnbc.com/id/100922519

    But look at Japan and China, they might just be doing exactly the opposite with Quantitative Easing as they try to shore up their economies suggested here at this link.. http://www.moneycontrol.com/news/commodities/chinas-stimulus-push-japan-election-to-aid-gold-expert_923859.html

    SAR has got itself disciplined and is not exposing itself to large debt loads or silly takeovers like TRY or SBM that will put stress on them and eat into their bottom line. SAR's mining operations are in safe jurisdictions and not in overseas countries where foreign regulations or local currency appreciations might shunt their profitability just when it's ready for the uptick. And on top of the the big miners by sheer volume of their size can't be as adaptive or reflexive to the fast envivornment so their shutting down and laying off large productions also bodes well.

    TPR is not stupid to to lay almost all it's cash reserves (equivalent to it's entire market cap) unless it genuinely thought of getting a leg-up courtesy of SAR. They know there's probably two possibilities, a much higher share price or take-over, the market cap is key here which makes it very attractive.

    Take a look at this article/video hot of the press courtesy of proactive investors; here is the link.

    http://www.proactiveinvestors.com/companies/stocktube/492/leveraging-opportunity-in-precious-metals-.html

    This stock is not for the day traders but for those seeking heavily discount value for the coming months. Set it and forget it. Enjoy all, there's a lot to be positive about this mighty gem!
 
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