Yes, I take back my dump the stock comment. Is this good or bad that a fund has sold their stake?heres the answer....
A broad range of Australian and international institutions
comprising existing and new shareholders have acquired an
aggregate 12.6% interest in the Company overnight..
heres the answer....
A broad range of Australian and international institutions
comprising existing and new shareholders have acquired an
aggregate 12.6% interest in the Company overnight.
The shares were sold by the Resource Capital Funds. One of the
Funds remains as the Company’s largest shareholder with a
9.3% interest, which it has undertaken to place in escrow for six
months.
The transaction was priced at 51c per share which represents a
small discount of 3.4% to the volume weighted average price for
the last thirty days.
Resource Capital Funds are amongst a number of long standing
shareholders that have supported the Company in its
rejuvenation and growth.
The Company welcomes the new shareholders onto its share
register as it continues to expand and develop long term
Australian gold operations.
It's not surprising that Resource Capital Funds have sold part of their holding. Their main aim is to lend money to resource companies in trouble for exchange of shares and options. SBM are no longer a high risk capital venture and there may be better rewards elsewhere.
Does the increase in australian dollar affect this one? I an sure it does, no one has bargained for an aussie dollar equaling or bettering the US buck good luck people.
Aren't they also gearing up for big things at Leonora (though I thought that was happening Feb 07)
Notice...very little downside....just 2 cents in this correction..or whatever you call it...and looks more of an upside here...more institution now broad overseas exposure...see what was said at diggers and dealers...I still hold and SBM shareholding in BDG might also come into fruition...ED and other directors bought more shares and with Gold on the upside...we may see a rerating of this company....after all what did Mr...or DR.DOOM say Gold $1000+........I still like SBM as they are producers and ramping their gold production up...and they are also talking about Ni in their presentation...DYORIf we look at SBM over the last 12 months, it has basically been traded in a range of 48 cents to 60 cents for the majority.
What we take from this?
Well I think its fair to say SBM are the real deal.
The stock is obviously held by a number of institutions which has been well documented.
I think this is a good a junior gold miner there is on the market.
There is a plan in place, and if objectives are achieved shareholder's will be returned.
Is now the right time to be buying?? I'd say it depends on your tolerance for risk.
Will SBM be 50 cents in 3 month time? You'd think so.
There is only so long a stock can trade in a certain range before it breaks out one way or the other.
I think a lot of the big losses we are seeing on the market are from forced selling, and a lot of investors are now sitting on the side lines waiting for the volatility to stop.
As a long term investor SBM looks a good opportunity.
Despite wobbly markets, SBM look to be set fair for the future with its Australian Mines. The Aussie Dollar, IMHO, is set to move back towards $1.35 to the Greenback and Gold is set also, IMHO, to continue its sideways trend.
Not expecting great things from SBM in the short term as Gwalia Deeps is not yet developed and it is quite a big hurdle to overcome.
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