My thoughts on GDXJ and how it works and what is Means for us!19 Sep 2020 13:01
Id like to try make a point,on our Gdjx inclusion and how it works, happy to be corrected but it would appear no due diligence is done,it’s based on technicals and not any fundamentals.perhaps once qualified with their criteria there is a bit of compliance DD to make sure it’s not a fraud or what have you.
But GDXJ did not buy into GGP like you or I would, believing in the company. There hasn’t been due diligence in the results or the drill holes or the proximity to telfer or our scally prospects. It’s pure technical factors on momentum and mcap and liquidity.it tracks a sector of qualifying companies(as does the sprott etf)
What is now likely to happen imo,is they will be followed in by the institutional investors as gold gains ever more momentum and GGP, by being included in this index ,gains world wide exposure. The effect of this and the recent derisking factors of mining lease and Resource increase should not be underestimated as it unties the hands of institutions in many ways.
Now those investors will do all together another kind of due diligence,the very kinda we do or should do. They will have confidence that we are derisked enough to be on a major ETF and now very much on their radar with no more mcap constraints etc.
Even better is that provided we maintain our technical criteria, we will remain in the index and those shares will be possibly some of the stickiest in our books,they won’t sell out in a 2 day shake,instos shouldn’t either but they might as they will have bought in a different way and have a risk appetite and tolerance unlike gdxj.
Sorry for the rambling but this is very much what my research is telling me,I’m happy to be corrected,I mean it’s all very very good news for us. Period ??
This is still the start,we’ve just entered the big leagues folks and whilst it’s strat the huge investment has come with nothing to do with our fundamentals discovery,it’s opened the doors for those who will enter on fundamentals and hey, macro/micro you name it,we got those fundamentals.
We are now a globally significant discovery.
Ducks ducks ducks