Hey all, Been reading these forums for a month or so now and have to say it has become a religous thing nowNew to trading so reading all these posts and learning as i go. Been reading the RED post now with great interest. Just trying to figure out if and when to buy in. Very e$citing times ahead for some of you no doubt Big thanks to people posting informative information for noobs like myself. Anyway back to the closet for me :
I would be interested in feedback from some of the longer term shareholders in RED, that are not apt to trade for a 0.5 - 1.0 cent gain:
If you have been a longer term shareholder/follower of RED I'm sure you would be as convinced as me that we are now in the midst of RED's initial re-rating by the market, with an expectation that funding is soon to be announced -the reassurance we got from its ASX release that development of Siana remains on track for gold production in the second quarter of 2011 probably has an unwritten notice and expectation of funding to follow! Therefore, if we are in the midst of that re-rating and it could move right past 30 cents based on fundamental valuation of Siana alone, why would you consider selling your shares at this price?
Do others have that same view of RED as me, or do you feel that its better to take profits at this halfway place, to ensure that you cut your risk profile? I have read ParleVousFrancais webpage commentary, and his view is appreciated on here.
I feel that whilst there are sellers out there, the buyers, who are presumably larger insto's, have a little time on their hands to hold the share price at each level waiting to allow the trickling out of weaker holders.
I for one do not have any intention of selling at anything like this initial stage of RED's re-rating. I am convinced that the buyers are not out to get a 1 cent gain, they are largely in to RED in a bigger longer term way, to extract much more value based on gold production and a development schedule that should see production in April 2011.
Thats my view anyway, any other views on this are welcome and sought . . .
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