solid move up today, page-8

The smart money is buying and holding 'safe harbor' or fundamentally strong companies over the technical. Strong growth requires volume and volume is often irrational. In time all undervalued companies become reappraised and deliver compounding growth.

Looking at ABM it fits the bill like few other penny hopefuls. This year is going to see more uncertainty and riots and shortages and rumors of strife to make the most hardened investor hesitate. This is the time in my opinion to consolidate into a few very strong companies with excellent management.

The more we speculate the more at risk we are of losing growth over this year because of sudden rapid turns in the Dow Jones. The case in point of ABM not given to wild moves past support or resistance as people buy but don't sell, an excellent indicator of future volume.

Key Buying Indicators:

1/ Darren Holden: "The analysis of previous exploration data and prioritization of targets suggests that the Twin Bonanza Gold Camp is not just 2 isolated discoveries, but has the potential to be a major gold camp that yields multiple discoveries."

2/ Tekapo iron oxide-copper-gold (IOCG) prospect in the Lake Mackay Project area and the Kroda Gold System in the Barrow Creek Regional Project area.

3/ Darren Holden: "ABM Resources More Than Doubles The Vertical Extent of Gold Mineralisation at The Buccaneer Porphyry Prospect at Twin Bonanza Project"

4/ Buccaneer is a large mineralised system, extending to 300 to 350 metres depth on all of the sections drilled to date by ABM

5/ Darren Holden: ?gold in these high grade outcropping and drilled veins can be processed using low-cost gravity concentration as well as conventional cyanide treatment."

I recommend just keep acquiring your tickets 4 and below, and wait because coming announcements will only confirm what we know that this is a real gem of a company.

ABM has a strong liquidity position and an increase in total assets. Things to watch are its low return on equity, declining operating margin and fluctuating price of metals. Because of the stabilizing Australian Resource sector and expanding gold discoveries the strengths are outweighing its weaknesses.

Also it must be said ABM is environmentally responsible and has lead Australia in research and development in its field. Small companies become big companies if the management has a clear vision and the cash to back it up!

Kind Regards