Wheres it going.

  1. 13,265 Posts.
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    I know that at least a few of you people must hold AVL as you occasionally come out of the woodwork and comment.I also know there are HC readers(those who have invested but dont post).The reason for this post is not to promote AVL but to try and entice some honest opinion on where this stock price is headed in the next couple of months.I know that ultimately AVL will be re-rated when it starts to produce its concentrate.What is worrying me a little is by just how much.The recent build up of resistance at the current level and the sell down today is the sort of market behaviour that will ultimately limit the upside potential of AVL.To be limited to its current price so close to cash flow says perhaps two things to me.One is that the market will not re-rate until infrastructure is proven by the concentrate reaching the smelter due to those percieved risk factors or it is being held at this level for some reason other than this.I would gratefully appreciate any feedback on this if you wish to comment either positive or negative.If you dont wish to comment maybe its time you started enquiring of your brokers(if you bought through one) as to why the price has not started to move.It cant hurt to let these guys know that holders of the stock should see close to the full POTENTIAL of the stock rather than a DISCOUNTED valuation.Sure there will always be some risk discount associatiated with AVL,but do you holders want to see YOUR stock limited by what others value it at rather than what the OPEN market is prepared to pay for it considering how much profit AVL will make.

    Ask yourselves one simple question.What should the market be currently paying for a stock that will produce a profit upwards of $15 million a year?I dont think its 11 cents.Do you?
 
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