Thoughts from Myron — Graphene to the Forefront
by takeprofits | February 17, 2014 9:01 pm
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Source URL: https://www.stockgumshoe.com/2014/02/microblog-thoughts-from-myron-graphene-to-the-forefront/
dear myron, do you understand why is lomiko down almost 50%? thanks
Best answer I can give you is my last response to you, you might want to review as well as that at #37. Guess what the first thing is I did after reading your question? Unfortunately not fast enough, as my reaction was, you mean to tell me I can buy Lomiko for half price? By the time I got a buy order in it was back to .09 and these kinds of swings intraday with juniors at certain times is quite normal. This is just a reminder that perfect timing is very difficult for the saviest investor. Sometimes it pays to divide your allocation to a stock in half, or even 3rds depending on the size of your allocation so that using stink bids you get the best average price over a couple of weeks
If a stock I have thoroughly investigated drops 50% shortly after purchase then I want to average down by buying more at the lower price, unless I can identify a logical fundamental reason such as something I missed in my original analysis. As I keep saying, each investor needs to do their own “due diligence” on a stock rather than relying solely on any analyst.
WHY? Because only by doing that will you have the courage of your own personal conviction rather than reacting in an emotionally or panicked manner to daily sentiment changes in the market. If the fundamentals for the company have not changed then a pullback should be considered a BUYING opportunity. I did go so far as to contact mgmt. to see whether they knew of any reason why the price should have dropped, checked news on the stock, re-read the website updates, and being they just raised millions in capital, could find no reason for the anomaly, maybe a big stake holder needed to raise some money fast for personal reasons and dumped a large block of shares. Who knows, the point is, if you check out the fundamentals properly then you won’t get shaken out of a good stock base on daily market movements.
myron, thanks again!
i did get shaken up but not shaken out because i read a lot of positive material and even watched the episode 22 interview and was unable to find any negatives.. i am beginning to understand better the notion of dilution after money is raised by offering lower buy-ins to special investors and also market-maker manipulations. i thought maybe one or the other accounted for the big dip. and then there is your thought about insider’s needing cash (even outsiders like me are known to need cash!). in retrospect, i also now notice that the volume was not heavy which would probably not be the case in a sell-off situation. also mgph is doing quite well. i bought lomiko at .1168 so the 0.66 made me wonder about causation in the absence of negative news. i have no further funds to invest at the moment but i have, on two or three occasions now, averaged down successfully! it is the case that brizf was doing well and i worried about balmf which as you counseled is now looking much healthier afterna few weeks. i will return to my patience portfolio.
i am still a new and somewhat thin-skinned investor but even though most of the gumshoe stocks (yours, travis’ and the bio-techs) are on the speculative side they peak my curiosity intellectually and financially. it is a wonderful new educational experience that i am having through stock gumshoe. reading the different threads one learns a great deal about many aspects of science, business, different parts of the world and the politics of business ventures in stressful economic and political times.
thanks again for your kindness, intellectual effort and educational finesse.
Thank you for that Myron. I too have wondered on the pull back. “is this a buying opportunity or bail out?” I am hanging in there as I like the company. I couldn’t find a reason to get out of the stock as there didn’t seem to be a lot of shares going. It may be harder for me to get a good read on it as I am using TD Ameritrade in the States. I appreciate your wisdom and guidance in this.
First off- Happy Birthday Miron!!
I used to own focus graphite (FCSMF) a few yrs ago, but realized it was still too early. Thanks for the heads up, I figured grapheme was still a long way out.
Focus, as is Lomiko, one of the best in industry. They both have partnerships with private research co’s. I recently bought Lomiko, averaged down, again, and think it will again see the 6 cent range soon. Keeping it. I think they have the same potential, but Focus is 46 cents because of press coverage, which makes Lomiko super cheap.
Taipan just did a second farm out. I’m up 50% over the last few months as it continues to move up with recent & continuing news.
Just a note about Mongolia. There has been talk about China doing the same as Russia just did with Crimmea. Because the US is doing so little, not protecting the Ucraine, analysts seem to think that China is about to take over Mongolia and Vietnam. A very real possibility. So if your invested there, keep a close eye on it.
Thanks greenfire 67, certainly happy to see there are investors out there who are not afraid or intimidated when a stock they have invested in temporarily goes south and have the courage of their convictions and average down rather than reacting emotionally and selling out on a low. Conviction comes from thorough personal investigations of the fundamentals, not just blind faith in an analyst. I too was an early investor in Focus as my very first graphite stock and I chose to hang in there through some dips rather than try and time the market because I too believe Focus and Lomiko both have a great future.
The reason I have not profiled Focus is because there was no immediate catalyst to draw attention to the stock compared to Mason Graphite where my timing proved to be spot on. Lomiko on the other hand is indeed “super cheap” and an incredible opportunity to pick up shares for less that the people investing millions did. If experienced institutional investors saw the value in the stock to make a major commitment, then savvy retail investors should consider the current dip a “half price sale” and buy what they can afford without over leveraging on one stock. I agree Mongolia is still a risky environment in which to invest, though I had not heard the rumour of a takeover by China, but these frontier markets can be very lucrative when things go right. Indeed they require a close eye on development and you should only take very small stakes you can afford to lose. Nobody likes losing money, but 10% of your portfolio in highly speculative stocks can provide some outsized returns even if you have a few small losers.
Recent article on Lomiko Metals (page 20):
http://www.bus-ex.com/content/weekly-issue-86
Myron, I had bought some of the stocks mentioned here. Lomiko Metals, Lakeland Resourses, IBC Advanced Alloys. There has been some news with Lomiko about a reverse takeover and the share price has been sliding. Lakeland also has been sliding. Have any of the fundamentals changed? Is this news with Lomiko a positive development? Thank you for all of your time and research that you put in.
Myron, this is my first time posting so please bear with me. Would you mind commenting on Allied Nevada (ANV) which has been sliding down despite other gold stocks moving up — apparently because of lawsuits and now they also seem to consider selling part of their Hycroft mine to cover debts. Would the latter be a positive development for the share price ?
My second question, with a market correction looming according to many quarters, would this affect gold stocks the same as other stocks, or is there a possibility this may actually benefit gold stocks ?
Thanks so much for your insights, I have learned a lot over the last 6 months since I became an irregular — but still a newbie …
Myron, do you have thoughts on the graphemes miner FLINDERS. Thanks for your excellent work. Wolverine