To make the best money as an investment club, we need to pick the stocks that will become the water-cooler stocks of the PM mania to come. In other words, the stocks that are so exciting that regular people will be talking about them at work, instead of working. This shouldn't be as much about traders as longer-term money-in-the-bank plays.
Aurelian is in this camp. I nominate Kodiak Exploration, KXL. If Aurelian is to become the Amazon of the PM mania, Kodiak stands a real good chance of being the eBay.
Besides, I can't find anything wrong with their story, and it is a huge story. A great job creating a district sized play in a neglected camp that is close to existing infrastructure and to a workforce, high gold grades near surface on multiple locations with some promising drill core from down deeper, with much news on the horizon. Clearly could become a take-out, as could Aurelian. Decent stock structure with no warrants, and sitting on good cash. This is unlikely to be a company that will have to come back to the market for a PP that will water down the stock, in my view.
And I really like that some of their heavy hitter investors are in the stock higher than today's price. The Thursday April 3 close of C$2.62 is a sweet place for this stock. It is starting to show intersting volume again. We came close to the 50-day moving average on a daily basis, stayed well above it on a weekly basis. The on-balance volume line tells me there is strong underlying support and that accumulation never really stopped during its recent decline. It just ran up hard, fell apart with the rest of the juniors, and is getting ready for another run.
stockcharts.com
I am concerned that the group is doing all its buying right now. I think gold will probably get down to $850 and that this summer will be a better time to load up.
Is there room for warrants in this club or is it just stock?
Michael |
