Hi all,Just though that i would share with you all my argument...

Hi all,

Just though that i would share with you all my argument for buying shares in TRY at the moment because they are very cheap, in an industry that is likely to become very profitable for all those who are bullish on gold, and looking to buy into a small cap. Firstly, lets have a look at the fundamentals:

Price has fallen to around $2.00 from a late November high of $5.00

Pros:

- P/E ratio of 5.44 (4.02 lower than the sector average)
- Price/Book ratio of 1.03 (very attractive)
- ROA of 21.61%, ROE of 27.75%
- Low Debt/Equity, and relatively low debt
- NPAT up 27% to $13.54m for half-year ended 31 Dec 2012.

Cons:

- Relatively low EPS
- No Dividend paid

As stock price got cheaper, there has been strong director interest, with directors purchasing a lot of the stock as well(see ASX announcements - Change of director interest). Interestingly, there is also a takeover bid in the works for West Australian Azimuth Resources (see AZH).

The pivot of my interest in the stock however, is my bullish view on Gold. For those of you who agree that the price of gold is only set to increase from herein, this may be a good opportunity for you. In my opinion, all this QE from Japan and US will cause inflationary pressures, causing investors to run to Gold in the long-term. Not only that, but gold is very resilient in the markets, and increasingly sought after. Furthermore, there is no doubt that demand of gold has outstripped supply since Golds dramatic fall in price recently.

So, For those long-term investors willing to wait it out, TRY could prove to be a great opportunity!