GrrrrrOh, I feel all giddy! I've actually bought a real stock in a real company.
The rationale is pretty simple: Although JAG has lagged behind its growth timetable it is still growing. The company is now shaving about $70 or $80 off its last quarter's reported cash costs because the Brazilian Real has dropped to R$2.12 against the greenback. Once you add that not inconsequential saving to the mix, there's plenty of reason to see EBIT per share of around $0.48c per quarter (according to my calculator, spreadsheet and finger-in-the-air, at least). That won't make it to the bottom line, of course, because JAG is still on its growth cycle and there's capex to be spent, but it does show the robust nature of its operations even with gold at $800/oz.
So at U$3.86, I think it's time to pick up a bargain. I'll take a decent percentage profit if the market offers me one (be that in the short term or long term...we shall see), and there's a puke point to bail on the play already pencilled in if the market goes against my wishes. Keeping it nimble. DYODD, dudes.
The rationale is pretty simple: Although JAG has lagged behind its growth timetable it is still growing. The company is now shaving about $70 or $80 off its last quarter's reported cash costs because the Brazilian Real has dropped to R$2.12 against the greenback. Once you add that not inconsequential saving to the mix, there's plenty of reason to see EBIT per share of around $0.48c per quarter (according to my calculator, spreadsheet and finger-in-the-air, at least). That won't make it to the bottom line, of course, because JAG is still on its growth cycle and there's capex to be spent, but it does show the robust nature of its operations even with gold at $800/oz.
So at U$3.86, I think it's time to pick up a bargain. I'll take a decent percentage profit if the market offers me one (be that in the short term or long term...we shall see), and there's a puke point to bail on the play already pencilled in if the market goes against my wishes. Keeping it nimble. DYODD, dudes.