why carrick gold? priced at $8 per ounce

There is talk in other threads of putting this one in the "bottom drawer", while I am happy to do so and wait out any share fluctuations I don't think it will be necessary.

First the vitals.

139m Shares
$.40 closing price 19/07/2010
$55.6m Market Ca0p
$22m cash (as reported in quarterly 16/07)
4.2m ounces of Gold (resource)
$5.75 BILLION - Spot value of Gold resource

Currently they are priced around $13.25 per ounce or once you take the cash out of the market cap it's more like $8 per ounce. Given the AUD price of Gold is currently $1370 this seems ridiculously cheap.

It seems the uncertainty surrounding the PFS is partially to blame for the drop as well as the recent passing of Frank Car.

Regarding the PFS, personally I am somewhat relieved that they have put this off and are concentrating on shoring up the resource/reserves. We are heading into some uncertain times and personally I think finding funding now or in the next 6-12 months could prove quite difficult.

We are heading into a strong seasonal period for Gold. Last year between July and November we saw a US$300+ rise (35% move from the July 8th low). We could see a similar move this year. If we do then Gold stocks should come back into flavour. If this happens at the same time as the rest of the market is struggling I can tell you I would rather be holding a company with a strong cash position and putting out decent drilling results than be holding one that is trying obtain funding following PFS in such a difficult environment.

For these reasons and more I believe Carrick Gold is a fantastic buy at these levels as a longer term play and could also be worth a punt at this price for a short term play.

On top of the above Carrick also stands out as a take over play. There are no other juniors with this size of resource priced at this ridiculous level.