insider trader: stock pick of the week 23/01

Symbol / Company
AZH /
Date Picked
23-01-2013
Price When Picked
$0.280
Company Overview
Inside Trader Comments:

This one grabbed our attention due to the significant Directors activity as well as a large and sustained increase in buyer demand and smart money.

This gold explorer operates in Guyana (South America) and believes it is a much better operating environment than West Africa even though it is similar geologically.

The story sounds compelling and the price will most likely be driven by news and drilling/exploration results.

Of course, an operation like this still has to be regarded as speculative but with the current interest in the stock, it looks like a good bet to us. Possible short term gains as well as good long term results if everything goes to plan.

from their website:

Azimuth Resources is developing gold and uranium exploration projects in Guyana, South America, (East and West Omai Projects prospective for gold and the Amakura Project prospective for uranium mineralization).

West Omai
Aggregation of licenses granted for gold and precious metals located between 15km and 60 km to the west and northwest of the Omai Gold mine.

West Omai is Azimuth's cornerstone project. It sits astride a largely unexplored 30-40 kilometre strike length of the same structural stratigraphic corridor which host's Iamgold's 3.7 million ounce Omai Gold Mine. The West Omai Project presents excellent potential for the discovery of significant gold resources. Key features of the project are:

The largest single artisanal bedrock gold working in Guyana - the Kaburi Prospect, where multiple sub-parallel 5-20m wide quartz stock work and sheeted vein zones have been exploited within an area of 500m by 400m. Kaburi had never been subject to drilling or modern exploration prior to Azimuth Resources drill program in November 2011.

Numerous artisanal bedrock and alluvial gold workings combined with several regions of significant geochemical stream sediment anomalism, all of which can be spatially related to readily discernable regional structures, lithologies and trends. These define a discreet corridor of gold mineralization and a first order target for systematic exploration.

A substantial portion of the mineralized corridor is masked by a thin veneer of unconsolidated transported overburden (White Sand) which has left large portions of the corridor untested and virgin.

The management of Azimuth believes that high shareholder returns will be realized through an early focus on the aggressive, systematic and thorough exploration of the West Omai Project, building on the known existing near surface gold resource, while underpinning long term shareholder value by pursuing a measured and cost effective approach to the exploration of its large regional land holdings. Azimuth's ultimate objective is to become a gold producer as soon as practical with the longer term goal to reach mid-tier gold and uranium producer status based on low cost, long life operations.


Nielsen Indicator Buying Level
2.8 times more buyers than sellers
Weekly Trend Analysis
Downtrend
Daily Trend Analysis
Uptrend
Short Term Support
27c
Short Term Resistance
33c
Director Activity
Date Director Action Volume Average Price Total Consideration
16-10-2012 Terence Harvey BUY 100,000 $0.400 $40,000
16-11-2012 Michael Hunt BUY 200,000 $0.300 $59,660
16-11-2012 Terence Harvey BUY 200,000 $0.300 $60,000
13-12-2012 Michael Hunt BUY 67,639 $0.250 $16,910
21-12-2012 Terence Harvey BUY 195,946 $0.230 $45,045
21-12-2012 Richard Monti BUY 230,800 $0.236 $54,506
04-01-2013 Michael Hunt BUY 199,730 $0.240 $47,935

View Director Activity Chart
Graph

Top Bar - Stock Price
Bottom Bar - Nielsen Indicator
Additional Graphs
NI End Of Day Chart

http://www.theinsidetrader.com.au/niit.php?action=spotw