I hear ya Adrian. I got in again $1.83. It's not surprising what...

I hear ya Adrian. I got in again $1.83. It's not surprising what were seeing really. The gold price is still healthy at just a tip over AUD$1440/oz currently. Good news for SLR holders.

I'm in for the long haul this time and I'm running with the ERA valuation written by Keith Goode. He mentions in the report that a pullback is likely after the Costello drill result that really put a rocket under it. When I was buying at $1.83, the short term argument for the direction of stock prices was a 50/50 call.

High expectations were already priced into the SP to a large degree. The updated JORC will help remove the speculative element and give a solid base. A decent Q result would be nice to help solidify the gains, with a particular emphasis on production costs staying low.

Arguably the headlines of a slowdown in China will lower the AUD, put debt fear back into the market as China makes up a considerable component of demand for US Treasuries. If the Chinese dont have the projected surplus funds to keep buying the Treasuries then there could be concern focused back on the U.S debt, which will jack up the VIX. The spread on US Treasuries looks to be incredibly important.

This fear might kick gold up in the short to medium term. This to a part degree depends on the inflation / deflation argument sentiment and who is currently winning that debate at the moment. It's still too close to call. One thing is certain is that it's hard to find an analyst who is both bearish on the S&P and bearish on gold at the same time.

The players who are moving this stock atm are unlikely to be long term investors or retail holders. Turnover is only $1million a day which is pretty small. 618,000 shares out of the the total issuance of 178.8 million traded. It's tightly held. Seems like a lot of punters want to ride this for at least the medium term. Sentiment there is pretty good I feel.

I see that Baker Steel grabbed another small but notable few last week to add to their holding.

I'm not losing any sleep owning SLR from $1.83 with the information presented in front of me. In the next 12 months if I ever saw a stock that is likely to still keep going up on a risk/reward basis, this is still it.

Cheers.

Peggs.


As always - DYOR.