RSN - The hidden gold gem?

[jonathan76]

Hi First of all, I am new to this stock market.

I'm also not a chart person and I invest by demographics and trend and set myself a theme base on the demographics and industry trend.

For example, knowing when china is booming since 2000 and one day the people will get rich, they will demand more oil and gas as they can buy cars, I've kept a portfolio of oil and gas since 2001 as I believed crude oil will break $100 a barrel one day. I've only recently found out on news there's a guy that share the same investment strategy like myself. He's Phil Mathew, the top fund manager in the world with his Mathews Capital Partners fund.
We've similar portfolio or so call trend or theme over oil and gas. Another big difference of us is that he invested. I didn't. So he's rich and I'm poor :)

Having said that, recently I identified another trend and I don't have figures to back it up as I don't keep track of data as you guys are.

The trend is that gold price will soar not because of just investor buying gold when inflation goes up, but mainly because gold crazy customers in india and china. the love and demand for high grade gold in india dated back centuries. If few hundred millions of the world population can afford to buy gold cheaply years back. I believed the gold market will explore if billions of both india and china population demand gold. Not just gold, but high grade gold. This brings me to identify RSN or Renison Consolidated Mines

The facts I think about RSN and this gold thing and why I will buy its stock are below

1) its cheap 4 cents
2) it has high grade gold
3) its located in queensland which is close to transportation facilities to ship to india and china
4) it also has coal and coking coal as a bonus
5) it keeps asking for capital raising to complete exploration but each time it get it. this also means its debt is high and therefore stock is cheap as not many people dare to invest
6) it has ANZ as shareholders and surprisingly, Phil Mathew whom I mentioned someone who share the same investment strategy as me, just bought 10% of its shares last month
7) gold price breaks $1000 just few months ago and now its $800+
8) another surprise, like Phil Mathew, I like to buy first if I feel the stock has huge potential and undervalue and investigate and do more research later. So here I am, just sharing my thoughts.
9) last week I came across an interview of Phil Mathew somewhere on news and he accidentally mentioned that he's looking at gold stock too but fall short when asked which company he's buying. bingo, its RSN.

any thoughts? I am more than happy for any critique as like I said, I invest with facts and identify trend and invest with a theme.

regards

Jonathan

[Mysterybox]

Nice fundamentals there, never gotten into gold myself. [newbie] but I like the theory with india/china having a large demand for high quality gold.

Quite exciting you have parallels with someone so successful, best of luck on this. Added to my watchlist and will follow =)

[jonathan76]

Another fact to buy Gold now is hyperinflation. Below are extract from the Australian dated 12th June which explains my thoughts.

http://www.theaustralian.news.com.au/story/0,25197,23847903-36375,00.html

"A year ago, in a group of 24 large developing nations tracked by Bank of America, about three-quarters were either meeting or staying below their inflation targets. Today none of them are. Inflation overall in these countries has returned to levels last experienced in 2002, estimates Fitch Ratings."

"In several large emerging markets, double-digit inflation has already arrived or is expected shortly, including Russia, Turkey, South Africa, India, Indonesia, and the Philippines."

"In the last week alone, Russia, the Philippines, and Indonesia all raised their key interest rates. "

In only a year alone, 24 countries are entering hyperinflation and its too late to increase interest rates as the effect will only be felt usually six months later.

in conclusion, In times of hyperinflation, gold is a store of value which cannot be printed out of existence

[AMR]

Well, if Phil Mathews is buying in, that's a lot of smart money. It seems to be pretty illiquid and has a bit of a history though.

[Grand Uber]

not to mention Dr Leon Pretorius

Stephen Bizzell (Chairman)
B.Com, ACA, MAICD, SIA(AFF)

Stephen holds a Bachelor of Commerce degree from the University of Queensland and is a..........is also a Director of ASX listed Arrow Energy NL and Bow Energy NL.

[steve fleming]

has a bit of a history though.

"a bit of history"....more like an encyclopedia full!

Its been one disaster after another for these guys for about the last 10 years.

Still every dog has its day.


http://snitzforum.sharetrader.co.nz/topic.asp?TOPIC_ID=18981&whichpage=1&SearchTerms=rsn

[AMR]

Do tell us more Steve...I only mentioned it had history because the charts showed the share price going nowhere since 1992.

[Grand Uber]

soon to be over 1 billion shares on offer, these guys just burn through the cash

the only question is why the interest from the big guns

[jonathan76]

Good questions.. why? RSN is the only odd one out of mathews portfolio of major stocks. the rest are all oil and gas and he suddenly scoop up 26 million shares of RSN.

[steve fleming]

Well, if Phil Mathews is buying in, that's a lot of smart money. It seems to be pretty illiquid and has a bit of a history though.

I've been looking more into this Phil Matthews guy...pretty impressive!

He started his main fund 5 years ago with $6 million.

He has now turned that $6 million into $2 billion.

You'd think he'd know what he is doing.

[jonathan76]

Yes, below is his portfolio and RSN is the odd one out.


>>>>>>> purch>>>current>>no. shares>market value>>>>profit>>>>>>>>>>>%
AOE>>>>2.640>>>>3.850>>13,350,225>51,398,366.250>>16,153,772.250>>45.830
BPT>>>>0.535>>>>1.360>>33,815,073>45,988,499.280>>27,897,435.230>>154.210
MEL>>>>0.750>>>>1.090>>9,505,287>>10,360,762.830>>3,231,797.580 >>45.330
NXS>>>>1.530>>>>1.780>>40,878,416>72,763,580.480>>10,219,604.000>>16.340
PES>>>>1.750>>>>1.890>>8,065,569>>15,243,925.410>>1,129,179.660>>>8.000
RSN>>>>0.021>>>>0.038>>26,710,937>1,015,015.610>>>454,085.930>>>>80.950
STO>>>>19.080>>>21.750>4,463,734>>97,086,214.500>>11,918,169.780>>13.990

[jonathan76]

interesting play. Phillip Mathew Capital just snap up another 8% share of RSN few days ago while I'm busy working :)

[Jess9]

A last gasp, or is this one leaping back into life? It smashed through its Macdunk (30 day) moving average over the last 2 days (volume convincing - especially against Dow falls).

This isn't a latent CSG thing playing out is it? I see they hold coking coal assets/pemits in NSW (as well as gold).

[Jess9]

Stephen Bizzell holds a lot of RSN, was a co-founder of Arrow Energy and is still a non exec Director of Bow Energy Ltd. Sounds like he knows Ron Prefontaine from way back.

A year or so ago, Matthews (of Sabre fund) had a large block of RSN and this was discussed in the same breath with his more outright CSG investments.

With CSG all the go now...Bermuda any long shot BOW/CSG play starting here?

[Jess9]

Anyone else following RSN at the moment? Its chart looks interesting. It looks like it may be in for a run or better yet even a rerate. Last quarterly indicated good focus on gold and possible sale of its coal assets. Chair, as noted above has past CSG connections.

[Jess9]

Hi Phaedrus. This one is probably too small and risky to be on your radar...could be my rose coloured specs again... but I think I see at least 2 good buy signals confirmed by volume.

[STRAT]

Well done Jess.
Not bad for just some rock chip samples eh? :D

[Jess9]

Thanks Strat. Good volume today on the up move too.

[Aotea]

Hi Jess. Thanks for the posts. Do you know if Mathews still holds his?

[Jess9]

Hi Aotea. Not sure.

What caught my attention was the rise since 0.2 and.3 c. The market likes this one NOW. Yesterday (Friday) was a very negative day for the markets. But RSN turned on .6 and closed up on .7 (17% gain). Could be in for another run up from here... but check the charts and make your own call. My guess is it maybe heading into the 1-2c range soon. But please DYOR.

[Jess9]

Here is the current 3m chart...

[Phaedrus]

Hi Jess, I have only just now noticed your query of 2 weeks ago. I presume that the signals you refer to are the 16 Sept break above previous resistance on well above average volume. This of course bumped the OBV up into an obvious Buy signal. It is interesting to note that exactly the same thing had happened previously on 10 August.

See how the Resistance at 0.5 cents, when broken, became Support. This is reasonably common.

Notice the large number of "four-price-Dojis" (Where the Open, High, Low and Close are all at the same price). These are normally quite a rare candle, but here they are caused by the very low number of RSN trades. This pretty much negates much of the value of candlesticks. You would, for example, be foolish to attach any great significance to a "Gravestone" Doji formed by this stock.

You can make (and lose) significant sums of money on "penny dreadfuls" like this one. Not for me, but good luck to you regardless.

http://h1.ripway.com/78963/RSN104.gif

PS. I notice that your chart is in .jpg format. Files in .gif format are much smaller in size, load faster and give clearer plots.

[Jess9]

Thanks for that. As always, appreciate your input on these boards. Fingers crossed on this one then : )

[Jess9]

RSN re-rating now : )

[Jess9]

Another one to watch this week IMO. Looks oversold from last sell-off, at yesterdays close. Mid 1's is possible next. But please DYOR. This is still "getting out of trouble" category/risky.

[Jess9]

Ok OK had my week wrong, try tomorrow. Sparking up again. Could go mid-high 1's soon. But for heavens sake DYOR, risk return etc.

[elZorro]

RSN down at 0.1c lately, but I dug this thread out of the archives because they have been granted two big exploration permits near my beloved Glass Earth Gold's permits, around Waihi. Hard to dig up any facts about the insiders, anyone know why the sudden interest in NZ, as these are their only two permits here I think?

I note their MCap is about 3mill, share high a few years ago was 14c, are they capable of doing anything now?