Could hit $2.50 much sooner than you think. For a company that is among the least volatile of the gold producers on the way up, the down days tend to be fairly vicious. Perhaps due to being over bought on the way up there is a fair bit of scope for shorting now.
27 month low today and not a lot of signs of strength in the share price when other gold stocks have been outperforming . Gold price rally also stalling. If gold price goes to test 1180-1200 again I would expect RRL to reach the historically significant level of $2.40. All the levels seem to match up very well with major Fibonacci levels.
I am reminded by the comments of Rick Rule mentioned earlier that he expects Regis to be a 'must-own' name in the industry in the future. The combination of short term weak company fundamentals due to production issues and another gold price fall would represent a great opportunity in my view. The value appears to be in the quality of management and reputation for operational excellence (assuming it remains intact).
RRL Price at posting:
$2.69 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)