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Allied Nevada Gold Şirket Message Board

  • avoision77 avoision77 Jan 22, 2013 4:04 PM Flag

    stocks go up and down

    always disheartening to see your stock go down very quickly. fast price action like that always draws people to sell. sometimes this type of price action is manufactured by market makers speculators to give the impression that there's a problem when there isn't, as a strategy to buy up positions on the cheap. ANV is not super liquid and there aren't a lot of shares available. so in my opinion, this is what is happening. i've checked out what ANV has said recently. all the new news is positive. so, if you think this is a good stock, you should be buying not selling. because if the analysts estimates are anywhere near right, this company is set to earn $1.4 billion in revenue and over $6 per share in 2015. At a conservative 15 P/E multiple, this a $90 stock. These revenue and earnings numbers are not pie in the sky. mining companies have to spend huge amounts of money to get a mine started. these costs don't change much, even as production increases, which is why the earnings are expected to double in 2013 and then triple by 2015. that's exactly how this business works. now, that doesn't mean ANV can't go down more. but if you understand what you're buying, you'll know that it has nothing to do with the business, but the just usual shenanigans of how the stock market works.

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    • Good post! With any junior miners you have to expect huge drawdowns such as what's happened to ANV in the past months. If you believe in this business you just have to keep buying when it's at these prices and keep in mind it can go much much lower than you can imagine. The shorts have done well...let's see if the ball goes back to the longs.