So after my last blog entry I got some ignores, I find that funny in a way but I guess there are people here just looking for the information guys that can help them make money. I also look for the people with the real goods, solid posts with just pure information. But I also like to read the opinion posts because they get you thinking.
I've been wondering if I should post something about an individual stock and I guess I feel like trying it now. Wonder how many ignores I will get. lol
Aura Silver Resources V.AUU. http://www.aurasilver.com/s/Home.asp.
This little company with 45m shares fully diluted is selling at under .30. I got wind of AUU thru a very good friend that has real ore body understanding.
Go look at the last drill results http://www.aurasilver.com/s/NewsReleases.asp?ReportID=359822&_Type=&_Title=Aura-Silver-Drills-Silver-Rich-Discovery-Hole-12.1-Meters-of-533-GT-Includi...
and notice that the grades get better as the drill goes deeper. This is super shallow stuff to start with, Could this be a monster?
News is pending, the stock does not have a big float and the trading is sparse. Be careful trying to take a position in this one as you could drive the price up large with 100k shares.
Downside is that this stock has run up big on the initial news and if expectation is baked into the stock at these levels, it could go down if next results are a dud, which can happen, even though the long run can play out. The sp has come off the highs and I've been buying from the .40's down to the current lows. I am loaded as much as I dare right now. Next to ML this is my biggest holding. If your interested, I would try to pick some off below .30, don't run it over .30. I think bids at .28 can and will be hit with some volume, there are people sitting there with good gains that just want out because they made so large already.
This is one that I think you can invest in and trade. And right now before the news is hopefully the time to be loaded with core and traders.
If your getting traders at .28 and the stock runs on news, you want to take 1/2 off at .42, then see how it plays out, the small float could keep it running. There is going to be a financing required very soon for exploration to continue. the stock will be run up and that's the time to unload the rest of the traders. Let the sp drop on pp announce and then pick up the traders again. I have no clue about sp for these events or when they would happen.
An overall market meltdown will hurt the juniors bad, but if you have the real deal, the sp will come back with vigor so in my opinion, don't sell the core unless the story changes another year down the road. Next drill results will hopefully allow a good sp increase and the financing at less dilution.
My out on the core position would be1/2 at $1.25, 1/4 at 1.75 and 1/4 at 2.00, but that can change depending on the next drill phase results which I expect would be many months away. I could leave the whole position if I think the time is too long, get into something else and then come back closer to the news.
I love this venture game.
DYODD & GLTA