Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
It was a detailed report but conclusions were:
smaller, more leveraged companies tend to outperform. Right now, we are still in an uncertain environment with an ongoing correction in gold prices, so it is still a time to focus more on profitability than leverage.
That’s why I am bringing Hummingbird Resources to your attention now. It ticks a lot of boxes.
I rate the share a buy up to 50p. My 12-month target is 70p and three-year target is 200p.
For my part I’m trying to diversify into different gold mining territories but I am convinced gold will benefit from the current printing money situation
UB you only need one of the institutions unloading a few to bring the pice lower in a thin market
but with gold 1848 this morning
and zinc around 2200
the share is considerably undervalued based on likely profits irrespective of other issues
Fundamentals for GFM looking much much better
Zinc and gold not correlated but both going up for different reasons
Some if zinc mines closed/ closing
Gold must benefit medium term from the massive we and governments borrowing worldsidd
as mentioned before
aviation suppliers order backlogs have fallen off a cliff with no early recovery in sight
and redundancy costscan bevexpensive
how much of the high margin business is directly flying hour related
strategically important firms will be helped but the worry is shareholders are not the governments the main consideration in these circumstances
the good news is that car use coming back fairly quickly
on share price i am i seller at current level or higher and a buyer below 50p
company has good management and broker opinions optimistic but i reckon high margin product support business at gkn has fallen of a cliff with no flyng or driving
this will put enormous cash pressure on a fragile balance sheet
friendly bankers will be needed
im sure that the folowing factors all look very positiv
gold now 1550 dollars and likely to go highere
doller /yen
sterling depreciation
lower marginal extraction costs as zone 2 production starts
so
only negative is zn price but thois coud change
My only slight worry about GFM was resource on zone 3 before zone 2 gets under way
This worry goes away completely
The present share price is ridiculously low but
Results and new resource statements on the other zones will help
No brainier but st this price
Looking at the annual report mine map the expansion into zone 2 is very straightforward with little capex It will bring increased t/o and lower unit costs (low anyway) and fill processing capacity Zinc price fall is Trump hysteria and won’t hurt GFM as much as other higher cost producers Zinc price recovery will be bonus So very bullish overall
The next big jump in the share price will probably be a zone 2 award although the chairman wont comment on the timescale the excuse for no dividend is keeping some cash for zone 2 expenditure so there plenty of upside and i agree 200+ as a sensible target hold /buy