Running Commentary on the SP Movements., page-14284

OK, the company I've invested in is Silver Lake Resources(SLR). I bought at 36.5c yesterday.

Since everyone her wants to talk about fundamentals I'll talk about fundamentals.

I had $100,000 worth of MGX (Mount Gibson Iron). MGX has about $400,000,000 in the bank and the MC of the company is about $400,000,000. The company also owns the richest Iron Ore deposit in the world. Not the biggest but the richest, which it is about to commence mining soon.

This is on top of existing producing mines.

The deposit (Koolan Island) is the richest because it has been mined previously for quite awhile. No need for any drilling. The company and everyone else knows what it has.

The lease is backed by the Western Australian government which gives, and has given, mining companies favourable treatment for more than a century.

Anyway I sold MGX and put all that into AVZ because the share chart was on a tear. Nothing to do with fundamentals at all.

Now lets look at the "fundamentals" of AVZ. It has very little can on hand and the cash it does have on hand is courtesy of what now seems like a very generous share and options deal. The cash has not come from profits from mining.

AVZ has a lease backed up by the Democratic Republic of Congo, which to be honest does not look like having democratic elections anytime soon.

I'm not preying because I have no intention of buying AVZ shares again. Buying AVZ was a punt made knowing the risks. The risk of the DOW being on the verge of collapse and what that might bring.

I wish all the shareholders of AVZ all the best. If your fundamentals are solid there's nothing to worry about. People like me and mbot are just annoying side-shows to be laughed by those retiring early.