SHG.L – Shanta Gold – volatile

Interesting to watch SHG.L (Shanta Gold). Volatile is not the word for it! It’s down 31% over 1 month, but up 24% YTD. There are delays in commissioning, and fears of capital dilution as its debt finances look too stretched to accommodate the delays. Given the steep decline we’ve seen over the last week, it appears that some people were in the know. as the stock had declined before an official announcement was made on Thursday. Still, if you had sold out Friday, you’re in a place of hurt. SHG has rebounded strongly since then.

I think sometimes it’s a case of keeping the faith, although clearly SHG is a riskier company to invest in. A broker sums it up better than I could: "the investment case still intact and the stock looks “compellingly cheap” at the current level. ".

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About mcturra2000

Computer programmer living in Scotland.
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