Altyn Gold (LON: ALTN) has turned out to be an excellent little speculation as we said it might be. There's been a 20% return over the 10 days. Sure, there was risk involved but as we said at the time there wasn't all that much. And a 20% return without that much risk over only 10 days is indeed an excellent little speculation. So, bring out the marching bands, let's have a parade. For we did get this one right.
The background is that Altyn is a gold miner - that's obvious enough from the company name. However, there were problems in getting the accounts together by the date necessary. If you're quoted on the market then you must release your accounts within a certain period after the end of the fiscal year. For some reason Altyn's auditors were not able to do this. So, the shares were going to be suspended last Tuesday, as they were. However, the announcement that they would be suspended came Friday a week back. That gave a trading day for Altyn Gold shares to fall 20% and change, which is what they did. Being locked into a suspended share can be dangerous.
Altyn Gold share price from London Stock Exchange
As we said on that Friday there was an interesting speculation there. Altyn had also released is unaudited results which were actually pretty good. So, the suspension was said to be for a week or a bit - which is what it has turned out to be. Also, that the audited results were likely to be the same as the unaudited. There were no major arguments with the auditors, it was more a matter of getting the paperwork finished.
Well, that's exactly how it has turned out as well. So, Altyn shares are back up to pretty much where they were at the start. That 20% fall Friday a week ago offered a buying in opportunity. Rather Warren Buffett's idea of buy when everyone else is scared.
Any readers who did take that speculation we'd recommend taking the winnings now. Or, perhaps, take the original stake out and hold onto the 20% profit as Altyn stock. Our suggestion was specific to the circumstances of the suspension - we have no further view.
