Undervalued?.... or "Cheap"?There is a huge difference and I...

Undervalued?.... or "Cheap"?

There is a huge difference and I believe there are many of both that are listed on the ASX, hundreds in fact.

I use certain criteria. Share Price is only one of many and it must relate to the others.

* Resource definition with particular reference to the defined JORC Reserve, not simply an inferred / maybe resource.

* I wont go near "Old Gold", regardless of what management may claim they can do. This is especially pertinant to Australian "old gold" fields - The Failures are many and have burned many an investor during this current Gold Bull Run and that should never had happened.

* Open pit in Greenfields proven Gold production locations where multi million ounce deposits are likely.

* Cash and the Number of shares on issue - There is little value in a share that has Billions of shares on issue and a very low Share price = They cant raise the necessary Capital to extensively explore their tenements.

* From a TA point of view, AFTER the Fundamentals have shown value, I run some TA indicators over the recent 12 month Share Price history.

* Companies that have either 100,000+ per annum ounce production already or have a DFS / BSF established or close to being completed. I dont go near companies that have little hope of producing that 100,000 ounces per annum, regardless of the management "target".

The above are some of the criteria that I use to find undervalued Gold stocks and I have no regrets in stating that 'our' entire portfolio is in Gold Stocks (a considerable amount of money) - Yes! all the eggs are in the one basket and have been since the GFC in 2008.

Now, For a few that I consider very undervalued, I give you :- PRU, AZM, CAS, AMX, WAF with a particular emphasis on West African operations. I own no Australian based Gold Operations.

All the best with your research and decision making.

:) Fishhy