Great Buy opportunity5 Jul 2018 11:25
Good to see a few buying the dip today. Hopefully this will be the end of the short term weakness and price will start to head higher once more. Investment case still intact despite the naysayers trying to persuade people otherwise in order to get a low price: a great opportunity for investment at these levels. It's easier to build a decent sized position at the lows whilst short termers sell due to boredom. Building a position at lows and holding as the story unfolds and the share price rises is certainly a more profitable strategy than chasing spikes. So what makes ROCK shares a good investment? Cashed up - after the recent fund raising. This is a sizeable war chest which can be used to create value and drive a much higher share price. Skin in the game - the directors own 28.6% of PML. Most recently they invested £267.9k in the placing. That really is a significant sum to invest in such a small company.
Their fortunes are closely aligned with those of the shareholders and as such they are financially motivated to drive the share price upwards. By investing such a large amount in the company they have also shown a real vote of confidence in the new strategy. Paul Johnson - a key investor and director. He has shown the Midas touch with the likes of CON and GGP which have multi-bagged in a short period and where he built up positions at lows.
Assets - PML has world-class gold and copper assets in Australia and Papua New Guinea. The recent acquisition significantly transformed PML's asset base and all 3 projects hold the potential to be fast-tracked. Newsflow / potential catalysts - plenty of near term newsflow is likely starting with ground exploration at the Lighthouse Project where there is the potential for a mineralised gold system in an area with excellent historical drilling results. Low market cap -ROCK is at £6 m micro-cap. With such a low capitalisation it doesn't take that much in the way of good news to multiply the share price several times over. With good newsflow, there is the possibility of a multi-bagger here. Chart - the price had been basing sideways for several months. Sideways bases can often act as the precursor to a significant and sustained rise when price breaks above the top of the base e.g. see the 2 year charts of BMN, IQE, GAW, GGP, ZOO etc.
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17/11/2017
22:52 x54v: Oh dear, 2magpies really does seem to have a deep seated need to be "right". How sad. In his own twisted mind he thinks he is right because the share price is down a bit...in the very, very short term. But all my posts were nothing
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