First KUN and RCH are not relevant. They are in completely different industries. You have to do your own DD on the company.
Besides KUN and RCH look like very interesting companies. Thanks to you I'm doing more DD on them.
What happens a year down the road when KUN and RCH are trading above their highs, what will be your argument then? Is SHZ a buy then?
SHZ is a mining company with huge reserves. If you read their most recent report by SRK Consulting (http://www.srk.com/) you will find out why the company is STILL UNDERVALUED and I MEAN WAY UNDERVALUED.
3 million Ounces of Gold is estimated to be at their mine in Kyrgyzstan.
3million x $900 = $2.7 Billion USD
give this a 75% discount and we still have a value of $675 million USD. This does not include any of their Copper, zinc, or Flourite mines and operations.
You understand what you are dealing with here? Someone obviously does that's why it traded half a million shares yesterday.
Make a better arguement for why you doubt the company and I'm willing to learn from it.
Regarding your question, check their SEC filing. It is true that the purchase of Kyrgyzstan has large reserve. However, ask yourself, why it was sold at such a low price (20M when SHZ bought it last year).
I heard the similar argument when people jumped in KUN and RCH. Check the old messages from their message board.
Again and again, people always think this time it will be different. However, they are similar one way or the other.
Just ask yourself, why are you buying? When the price was 2.50, the daily volume was around 3000 shares per day. Two days ago, when the price was around 4.00, the volume was around 30,000. And now, when it becomes more and more expensive, people start to jump in.
The only hope that you can make money is to wish someone will pay even higher price. This is not investing, it is wishing.