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3,001.9 s&p/asx small ordinaries

The Brains Trust, page-178

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Rfudd

25 Posts.

06/01/17

10:07

Post #: 21714920
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Originally posted by Orwell ↑

Appreciate your thoughts Rfudd.

I'm aware of Evolution EVN but won't invest in the stock with it being led by an investment banker, and a former Lynas director at that. He is a protege of Nick Curtis (who pumped up Lynas and and took out benefits ahead of his investors), he sat on its board and is using the same Executive Chairman structure used there. Once bitten, twice shy for me.

Further, any company boosting earnings (or output) by acquisition is not necessarily increasing return on equity.

I've heard the Executive Chairman talking up his company before based on external dollar and gold moves. But all the big gold firms benefit from this, so what differentiates them over others. What I want is a gold stock focused on getting more out of their operations, and then I can judge whether external factors will give them a tailwind. If they are cutting costs that might be positive, but depends on whether the mines need capital investment. Not sure on the details on this company, mostly just can't get past the Executive Chairman issue.

Thanks for your comments anyway.

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Hi Owell, Yes all worthy concerns to be sure.. Cant say I have run the ruler over it but the effect on ROE would be determined by the price paid. No idea if they paid the right price. My observation on EVN is that its is broadly correlated with the other large gold miners and the amplitude of price action in response to the fluctuations in Gold seem greater than for the others. Case in point would be the circa 30% rise since mid Dec low as opposed to ~%20 for the others. Anyway, thanks for your thoughts - best of luck.

XSO Value at posting: 2,417.1
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