Stockchase Opinions

Allan Jacobs Avion Gold AVR-T PAST TOP PICK Sep 27, 2011

(A Top Pick Nov 24/09. Up 381.82%.) Still likes.
$2.060

Stock price when the opinion was issued

Mining
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HOLD
Had some disappointments on production, so got beaten up. Chart shows a head and shoulders formation in 2011 along with a big spike up in volume. That was a good time to get out. Right now there is some support at around $1.60-$1.75.
COMMENT
Doesn't know it in great detail. Last year had a disappointment on production and stock sold off aggressively. Understands things are back on track. You have to be careful as these can go sideways for a long time, which this one is doing. Consider switching to Argonaut Gold (AR-T) which still has lots of legs.
WEAK BUY
They are not too deep in the penalty box. The second mind is possibly coming on at the moment. A lot of these gold have traded back down. It is probably all right here but not his favourite.
DON'T BUY
Gold. Political issues are not the only problem. They have missed on production guidance as well. There are better places to be. Highly speculative.
BUY
As a producer it is now drastically undervalued. Political risk is not in his mind, what it is to the market.
SELL
(Market Call Minute) The west African situation is not getting any prettier. Production challenges and government risk.
DON'T BUY
How do political risks enter into analysis? All the news is encapsulated into the stock price. The stock had a nearly 40% drop this year and has now entered into a consolidation phase. He would be very cautious with this stock.
DON'T BUY
Political issues in its Mali location so there are better places to be. If the political issues get resolved, there is tremendous upside. Doesn’t like the risk/reward.
HOLD

Into West Africa military commotions. It now needs money to perpetuate its development. A bit awkward because it is a bit difficult to raise the money at this time. When things do get better over all, it will be a better priced stock. Good management.

SELL

(Market Call Minute) Worried about oil pries.