Edge Seven Financial Sydney Blog 04

Regis Resources – out of a downtrend

Regis Resources Limited (ASX: RRL) is one of the few fundamentally sound material/mining stocks on our market. And it certainly doesn’t have much company at the moment in the gold mining space.

Regis Fundamentals:
1. Profitable gold producer (at current gold prices)
2. Three separate mines
3. Australian domiciled producer (ie no sovereign risk)
4. Net cash on the balance sheet
5. Well managed
6. Proposing to restart paying dividends for the 2015 financial year
7. Announced share buy back which may start shortly

And, if having gold exposure is good enough for Stanley Druckenmiller and Ray Dalio, than it is good enough for me.

Regis Technicals:

1. Price has come out of a two and a half year downtrend
2. The chart is as good as it gets from a risk/reward probability perspective
3. Gold loves trouble in equites although price will guide from here

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click to enlarge

Regis was a buy for me this week ending August 21.

16 October Update
Money Flow doesn’t lie!!
Regis closed the week at $2.12 which is a 50% gain to date (plus dividend & franking) on my $1.41 entry from eight weeks ago.

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click to enlarge

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

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