Investing in ARU stock.
posted on
May 15, 2008 05:46AM
The company whose shareholders were better than its management
Oh yes, ARU has the Gold find of decades but… ARU recently got blindsided by a government with a despicable modus operanti totally uncaring to investors and companies who had been acting in good faith.
Yes, one can be aware what the Ecuadorians are trying to achieve with their past Mining Mismanagement but, why punish the investors and companies who had been complying with all rules causing $$$ millions being lost? Does one honestly feel that this great find, so meticulously nurtured by the ARU founders will ever be properly adjudicated for the benefit of those who laid out their savings to bring it to fruition? This has to be one of the toughest most chaotic investments in any one's lifetime. You name it and it has happened to the ARU investment.Today, UNCERTAINTY is the big word towards this investment. It is not for the investor with a queasy stomach.
The quality of ARU discovery is something nobody can quibble about. Massive in potential value and open in directions so, it just has to be savory to bigger gold companies looking to add to their reserves.But holy smokes , can investors trust this present Ecuadorian government to play by Wellington rules down the road?
This haunting question has destroyed the present stock price of many Canadian and Other companies trying to hone out a living in Ecuador. Most investors probably are now, just hanging in hoping that the Ecuadorian future Mining Edicts will be fair so they can get the heck out of there. The failure of the Ecuadorian government to act in good faith will be a haunting memory for investors all over the world. So what can investors do? Hang in or go away (sell) from this unsavory aspect of having concessions taken away by government decree without Fair compensation? Those investors with tough endurance will eventually find out in the months coming. There seems to be factions in Ecuador in favor of mining and others who are not. Political posturing will probably prevail for weeks ahead in this regard. So now, from a investor perspective, is this new Ecuadorian Mining process going to improve or get worse? What’s worse? Well, try total expropriation by this present Ecuadorian government. Or, hopefully, this government will act with fairness. Whatever, this massive ARU with its FDN deposit will eventually need an experienced developer to bring it into production. Will the present ARU staff be able to handle this or will they capitulate to a Bidder? Yet, one can be assured that the Ecuadorian Ministry of Mines will hold a big meat Clever into any conclusions relating to this matter going forward. The long term ARU investors know how faithfully ARU management has positioned their company towards socially improving their employees and country for the betterment. What will be the eventual Fair price value of ARU if all the concerns are favorably met? That is the challenge to investors. But, under present turmoil and uncertainty, it probably cuts the value in half compared to more favorable investment situations in other countries. Bottom line, the scarcity of great Gold finds and the need for larger Gold companies to embellish their reserves makes ARU an attractive acquisition that might just reward ARU shareholders for hanging in.That hopefully will be the resulting conclusion.