Hi Everyone,
Since the month of May it has been very frustrating holding TRY.
Mill issue, wet months, low production, has all added up and now the market has almost given up on TRY.
It does not go up as much with other gold stocks but sure comes down faster even before them.
Honestly, it is very hard to take that, being a true believer in the potential of Karouni Asset and I am also a believer in TRY management.
I guess the problem is some other gold stocks are doing so well, extremely well, that people can't be bothered about buying & selling TRY.(while it is going through this interim troubled times) It is far too easy to put money into companies that are doing well, the trading is strong, money is been made on daily basis.
Here at TRY the trading is weak, volume is down, hardly any bid, even few ready sellers at these prices.
There is very little buying, perhaps only selling from some brusied and batterred holder who had enough.
For traders and short term investors it is a complete waste of time. I am a fairly patient man, but it is testing me big time. No doubt, there has been lost opportunity holding cost for me, my money would have made good return elsewhere. So this is the mentality from a long long time holder, holding enough stocks to lose some sleep over it. My fault, no one to blame.
But then I start looking from fresh, and think for a minute, what if I wasn't a TRY shareholder and was looking to make some investment on good fundamentals.
The fundamentals are hard to ignore here, at normal operation( without any hiccups) the company can make money at a USD1000 dollar gold price. So the higher the gold price more profits will be generated.
On top exploration potential is the real thing which could generate exponential return for holders.
The money has been spent, a AUD$ 100 million new mill & infrastructure is there, probably millions of ounces of not found gold is there,
In spite of difficulties close to half of the debt has been paid and from memory USD 39.2 mil remaining.
The repayments have been smooth out as well with the mandatory hedge requirement.
So to cut a long, boring story short, TRY is no longer a trade, it has to be seen from medium to long term investment perspective. Anyone has a day to week or upto a month time frame, it will be hard to make it work, but for patient people with a six month to a year time frame, this could be very rewarding.
As they say, Price is what you pay, Value is what you get.
I also compared the top 20 holdings from this recent quarter to last quarter.
Last quarter top 20 = 188 million shares
This quarter top 20= 196 million shares.
There are only 340 Mill shares (approx)
This means to me is the big patient money has increased their holdings, took advantage of the low share price , and where did those extra shares came from???? It only came from traders and very short term investors who have taken their money elsewhere, where it is working.
It is my belief that people who have forgotten or neglected TRY will be back.
No one loves TRY, no one hates TRY. All people want is to make money. When the trading activity gets strong, everyone will be back.
All the best .( From a suffering but holding strong sharholder)
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