AVB 0.00% 16.5¢ avanco resources limited

If AVB got to 10 cents today, I would:, page-117

  1. 6,689 Posts.
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    In times of uncertainty investors seek less exposure to risk and move away from shares to cash in a bank or under the bed.
    We are certainly going through this time. Investors who still like shares are looking for companies that pay a good dividend even when the share price is going down.
    Wise investors only place a small portion on high risk stocks even in the good times. At the moment no one is convinced that it won't get worse.
    The upside for AVB is that when investors gain confidence again and are in the market for undervalued high risk stocks, AVB will be a stand out.

    The long term holders are riding out the storm. New investors are trying to pick the bottom of the market. The bottom has not yet been confirmed. It might be right now or may be many months away. Until we see many months of global growth and rising commodity prices, significant new investment is unlikely.

    This is the current situation affecting AVB's share price.
    No rise after the end of the financial year and no bounce to 10c on good news as in previous years.

    AVB is building a mine. While the current share price would no doubt be a concern, it is not the concern.
    However, for investors, there is some doubt as to where we go from here with the copper price being so low.

    All commodities are affected by the global uncertainty including copper. We can use the copper price as the litmus test but it really boils down to we need a growing world economy.

    The share price isn't going to follow the normal graph from discovery to mine that's for sure. When and if the world improves, AVB's share price will make up a lot of lost ground.
 
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