AVO - Avoca Resources

[Nicks]

With global tensions now, people testing nuclear bombs, people running nuclear power, what do you think will happen to Gold and Uranium prices?

AVO - future returns on Gold production pumping out next year, large stake in ENR whom have Uranium prospects. Increase in geopolitical tensions sends Gold soaring. Im guessing that next year will be tense the way things are going with N Korea and the mid east problems.

This stock is good value and more importantly will be attracting alot of attention soon, especially when they start mining the Gold in 2007, but by then the share price will reflect that - what does this mean? now is an opportunity to own some of this company with excellent prospets for gains, 2007 is not that far away now.

 

[Nicks]

Hey Chief Wigam (or anyone else) - any chance of some expertise and some Technical Analysis of this?

 

[Nicks]

Up over 5% on rumours of takeover or announcement, hmmmm

 

[deftfear]

Do you know what these rumours are Nicks? I was expecting a decent drop today thanks to the POG, so I am quite pleasently suprised by today's 5 1/2% jump.

 

[Nicks]

Looks like the announcement on 24th. Funding to start ramping up production at Trident!

Look at the fundamentals of this little beauty. This stock stands out as it is not driven only by speculation. It has solid underlying value, real life projects, great fundamentals and a now steadying historically high gold price.
This is the undervalued cheapie of all the 2nd tier new generation of big miners, while people are focussing on some of the others such as OXR, Lihir etc this one stands out as a big potential gainer CG wise when realisation of that it has been left behind in SP gains becomes apparent and the pumping out of its mines starts next year (only 2 months away!).

 

[Nicks]

Well I think that realisation I was talking about is starting to kick in! I still think this is an excellent buy and will pay off especially in 2007. The SP CG should also begin more and mroe to reflect this, and the momentum seems to be starting in the past couple of weeks, and especially today!

 

[GreatPig]

Sorry to break in on your monologue Nicks, but here's a chart for AVO showing Friday's bounce back off the recent trend line.

Cheers,
GP

 

[Sean K]

Your charts are the best GP. So clear.

 

[GreatPig]

Well I don't like them cluttered with heaps of indicators, which I mostly don't use anyway. I have separate charts for the few I sometimes look at, one of the benefits of using AmiBroker.

And as with most computer programs I use, since I'm using computers most of the day by profession, I like to keep things high-contrast: darker colours on white backgrounds. I don't like all these pastels and greys that some people have that give low contrast.

Cheers,
GP

 

[Rafa]

After trading this a few times over the last few months, but finally entered in two weeks ago at 1.25 for the mid - long term.

I think i'll be holding this for the next little while now as the Feasibility study is released in a couple of weeks or so.

its my only gold play left now...
but GP's chart gives me good confidence for the ride ahead... Thanks.

 

[Sean K]

Been doing a little research on this and it looks promising. I am now only really looking at goldies that might have more than 2 m oz of resource and this may get there with their main project (Higginsville) having 1.1 m oz JORC but the project has lodes open in all sorts of directions and the recent drilling came up with some great results which are now been placed into a revised resource estimate and a PFS was supposed to be completed by the end of Oct and due to be ann in Nov. If they increase the estimate considerably this will give the sp quite a boost. I might take a small bite and await the results. If they have closer to 2m oz, then I might take another. Or if it's crap sell. :

I see a cup and handle in the chart.

Down side limited to about $1.15. Looks like a good trade atm with gold going up.

http://www.avocaresources.com.au/

 

[Sean K]

Breaking out. At $1.43 atm, looking good. Gold down a bit so this is very positive. I'm in, until this break is unproven.

 

[Rafa]

yeah, surprising move by AVO, no news, and a general down day in the market.
Somethings up....

Are you in Kennas?

 

[Sean K]

Yep.

I think the ann will be as I said above:

'a revised resource estimate and a PFS was supposed to be completed by the end of Oct and due to be ann in Nov.'

Good luck.

 

[Sean K]

AVO broken out again, finished at $1.44 yesterday. Probably come off a little today with the rest of gold, taking a break after recent strong gains and misconceptions about Democrats being bad for POG. Ha.

Expectations about the FS ann comng out will probably keep this strong.

 

[Rafa]

Probably come off a little today with the rest of gold, taking a break after recent strong gains and misconceptions about Democrats being bad for POG. Ha.

Is that cause its only republicans who start wars!!!
Whoops, wrong thread...

 

[Sean K]

New weakish support now established at $1.40, with good support around $1.30. This has had a great year. Hope it can keep it up. Probably needing POG to keep going up, but this has not really been tracking it. The projects it's working on are obviously driving the company.

 

[Sean K]

Tested $1.40 twice and moved up. Good sign. Early days, but good sign.

 

[Sean K]

Hmmm, broken $1.40 intraday. Little alarm bells ringing for me. Damn $US strength is killing gold stocks atm.

I have to put a stop in somewhere for this as not happy with overall market sentiment. Don't want to get caught out. I'm still expecting around $1.40 to be support so a close below this will be worrying. Perhaps $1.35 is a sell, and watch for another entry....

 

[deftfear]

AVO hasnt seemed to have followed the POG too much Kennas, since the may correction it has more than doubled while gold hasn't done much at all. Merril Lynch has a $2 price target for AVO, there is a 26 page report on it at http://www.avocaresources.com.au/downloads/research/avo_research_200611.pdf

My opinion of AVO looking at the charts is it takes a spurt upwards, consolidates for a week or so, then starts it's next spurt. Each high is usually around 10 cents higher, and the low about 10 cents higher as well, so a low of $1.30-1.35 is what I am expecting, thinking of topping up again around there, but I was saying that around 1.05 and 1.25 as well