Rio Amarillo Mining Ltd. (see the price chart 204.191.227.10 on the VSE has been seen by a well respected mining analyst as being undervalued.
In fact, the analyst suggests a price of $6.00 Cdn is more inline with what the price should be. The rationale for the outlook is in comparison with Arequipa Resources prior to the Pierina find. Arequipa was $2.00 prior which, when multiplied by the 36,000,000 shares, yields a $72,000,000 value. RIO AMARILLO with equivalent value would yield a price of $6.00 !
RIO has been trading in the $0.80 to $1.80 range in the last 6 months, recently at $1.02.
Anticipate a news release soon on the latest drilling results -- look for far more positive results and a move up. Rumour has it that RIO is also on the acquisition trail. This stock was picked by the Kaiser Bottom Fishing report as a buy earlier in the year.
RIO received negative results several years ago after promising early showings on their Candelaria project. The stock, then at $3.00 range fell to a low of about $0.35 in middle to late 1995.
See their web site at www.rio-amarillo.com
Looks like a good time to buy?
Cheers. |
