Special Feature
SBM CoNviCTioN Buy To say that Avocet Mining shareholders have had a torrid few years is something of an understatement. One look at the chart shows that the West African based gold miner has wiped out over 90% of its peak market capitalisation — it is now a fully paid up member of the ignominious 90% club. Question is: what has gone wrong and is there value to be had in the shares at the current price of 23p (time of writing)? Let’s take a sift through rubble in presenting our Buy case... Before we start with our analysis, it is interesting to note that in an echo of our feature piece this month on why analysts as a group are always wrong, that not one analyst rated Avocet as a Sell in recent months and it is only now, after the Inata reserves downgrade, that caution is being applied by the analyst community. If they are always wrong, then this is an additional ingredient; if the fundamentals stack up on the Buy side.
16 | www.financial-spread-betting.com | March 2013