In 2011 the goldie analysts at my brokers were warning me that AMX and GRY were over priced for where they had gotten. I talked to them more in relation to other goldies I was interested.
I had little interest in this company back then, but now I have. I can see some useful upside under the right circumstances. In fact I was in AMX in its previous run up a couple of months ago, and I now hold some GRY again, however I know I could be wrong about both of them.
However, my post was more about understanding fundamentals - just look were PRU is now as an example of what can happen to even well funded produers - its share price has halved from its high. Things have changed in the west African goldie sphere - costs blow outs, civil unrest, issues with getting lab results in a reasonable timeframe, new taxes, goldies on the nose here and in TSX, preference for dividend paying shares. The fall in the POG is only one factor - there are others which I have not mentioned. It is up to you to educate yourself.
If you are happy with buying at $1.50 and holding on as it fell to 28 cents that is up to you. Investing is a learning process. At least you have given yourself a better chance of making some money by buying recently.
Good luck.
loki
AMX Price at posting:
38.0¢ Sentiment: Hold 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)