Hi Guys, I would love an opinion or two if anyone cares to offer. On the above chart of SAR I have taken a long term view and there is a support at 58c the next bottom level appears to around the 51c mark. Topside at about the 88c mark.
Negatives The big question is why the savage dip? Some of the reasons we are aware of, high cost of production due to low grade ore being mined at the moment, POG being a little volatile on the downside, Guido substantially reducing his position. Speculating on other reasons, perhaps impatient shareholders who have been on the registry for a long period of time waiting, or should I say hoping, the extensive drilling program 35 mil for 2012, will tap into the one of richest veins of gold in Australia. Large stakeholders reducing their holdings as risk exceeds their limits, Gold P, volatile SP etc etc
Positives They should be mining higher grade ore later in the year and the SP should reflect that when the next production reports come out. Several broking firms have a price target around the $1 mark so this could get a few more people on the registry who are looking for value.
With all that drilling let’s hope they hit the mother load, if they don’t hit it there will be lows in this stock we haven’t seen since the start of 2010, 40c mark. I want to sell but I can’t because if they hit the vein the SP will break $1- $1.5 pretty quickly. My short term charts and brain say get rid of SAR, my long term brain, and HOPE say keep trading the fat in my position and not sell the lot !! (talk about a conflict)
SAR Price at posting:
56.5¢ Sentiment: LT Buy Disclosure: Held
