-
HealWELL AI Inc. Class A Subordinate Voting Shares (AIDX $0.97)
-
Westgold Resources Limited Ordinary shares (WGX $5.34)
The share price action has brought it down considerably during this tax loss selling season!
Where do you see support for the shares now?
Do you consider the shares priced fairly here at 1.00?
Current growth and outlook looks good, share price not so much, horrible!
I believe my question on WGX last week has gone MIA...your thoughts on their last quarter please?
Thanks!
Shares are down 54% now for the year. Year end bottoms are hard to call, but it is down from $1.45 on Nov 3 to 97c, and has risen only two trading days in all of November. Volume has picked up which implies a lot of the decline was 'throw in the towel' tax selling. We would be surprised if there was not some decent support in the 90-cent range. It has good growth potential, but cash flow is still negative. But we think it does have good 'bounce' potential in a different market environment.
WGX gold production rose nicely to 83,937 ounces in the recent quarter, up from 77,369 ozs. However, costs also increased, with all in costs at A$2,861 and ounce from A$2,422. Guidance was maintained. The balance sheet remains pristine, with $472M in cash, gold and investments. The stock remains very cheap at 11X earnings even after its 112% gain this year. We would like to see lower costs, of course, but the stock is priced right and we continue to like the sector.