Off course RRL is undervalued, blind Freddy can see that.
The trouble is doubt has seeped into poor old blind Freddy, because he has been focusing far too march on the price that the Market is prepared to pay for RRL (ie the share price), and has lost focus on the underlying value of RRL.
Hence the share market pricing has influenced blind Freddy's view of underlying value.
Share market pricing is market noise, nothing has happened in the last 6 months to change RRL actual intrinsic value.
Some have used Mr Market's mania to reprice shares every day to intelligently acquire more. Others have started to believe there is truth in Mr Market's psychotic nature, and have forgotten the reason they invested in the first place.
If you were intelligent in your assessment of the underlying worth in RRL, then you have nothing to fear from how the market prices RRL, and instead you should be using Mr Market's mania of pricing shares to your advantage.
Needless to say RRL is now my second biggest gold share holding (only 2% of the portfolio), behind Newcrest (1%).
I am not a gold bug, I just want a bit of portfolio insurance: so a small exposure to gold is good in my opinion.
I never thought I would be in RRL as my focus was the majors, yet Mr Market gave me the opportunity, because he went into one of his frequent psychotic depressive moods and dumped on RRL.
Price is what you pay, Value is what you receive, I cannot control the price paid for a share in the business, I can control the price I will pay for a share in that business.
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