ROB is a typical example why people fear to trade at Christmas and why people look for bargains. Lots of good buys at the moment in my opinion. The market is flush with them!
Mongolia is the most in demand geology in the world. Make no mistake the upcoming Coal Mongolia 2012 Conference coming a few weeks from now is going to lift everyone involved - A clear FA win for ROB!
The uptrend is going to continue more to the point, twice it has broken R1 and has done a great job of striving for R2. 2 points here usually get a third try. The Highs are higher and the lows are higher. The angle of the trend line indicates it is not a false trend. I am not a Chartist but I can spot a trend and draw trendlines!
Because in my opinion the uptrend is looking very sound, ROB has been quite oversold (Check the CCI) and now more FA is going trump everything. Just the rumors that are coming out regarding Mongolia, China and Australian companies that are all through the news-flow, (A great FA research technique is reviewing the news of other companies in the same boat as your own! Allot of people when they invest become tunnel visioned. FA is about seeing how everything inside the company, country and industry is tracking through a quarterly and yearly cycle) indicate to me that the next year or so is going to position ROB faster then HUN because of the acceleration of Capital and Demand.
The management is a critical factor here, long long term I would not be surprised at all if ROB or whatever it will be called will revisit ROB's glory days of 50c. Long business cycles where companies change their direction and sell off assets can lie dormant for years. Multiple sites in this license looks very attractive places to start. The market is ready to snap up any Coal and what is beautiful about ROB is its on the fast-track Fundamentally.
As I spoke about in an earlier post it is essential to look behind the Management to the real power behind the throne, what I call the kingmakers. Sometimes they are an individual or other times a company with a large group of friends or both!
Obviously ROB has to RC, done right this means real compounding growth for our capital. ROB for me has 3 vital Kingmakers for their success. Their fields are;
1. Geology 2. Capital 3. Growing Assets
I like to see growing Assets and Value at low cost, especially because the market is going to look for obvious safe havens like coal in Mongolia. A very cheap way to build value into any company is growing the board with experienced people. Money follows management and backs the jockey every time.
ROB we know, for almost a certainty, is going to proceed with this new horizon. My logic is growth of people = growth of value and that re-rates the price. Time and time again I have seen companies on the rumor of hiring someone or growing the board with experienced people getting reappraised. More to the point after the restructuring I expect a slow and sound uptrend to continue for the rest of the year.
HUN took time and so too will ROB. The reason Gob's catch was important is it shows the Brokers and the rest of us that this is only the tip of the iceberg. The good thing here with ROB is its low cap, its management and its direction.
I would love to read your feedback!
PS - All my opinions here could be completely wrong! DYOR!
Kind Regards
ROB Price at posting:
1.7¢ Sentiment: LT Buy Disclosure: Held
