Originally posted by Haplo
Speaking on the LIT - there is a good chance now that A40 can be added to the fund. They do have non-producing companies in there at the moment. So any entry would mean them buying for a holding which will only benefit the share price at this time.
H
They certainly would have us on their watchlist, and today's announcement could have released the trigger...I think anyone with a bit of knowledge in the sector will agree that anything under 0.20c is a very low-risk investment proposition here, funds who invest with a minimum of 12 months timeframe are very well aware that 100-200% gain within that timeframe is very realistic, could even be more - depending on when sentiment and realization that there will be no oversupply will sink in.
This today reminds me partly of when I was holding AJM a couple of years back...I reached my 12-month holding target and the SP had gained ~100% since my original investment, so I sold out on the next positive announcement after the SP had another nice spike and I was expecting a drop in the next week or so...however the SP just continued to rise...I think it kept going for a week or two and it only became apparent several days into that run that the LIT fund was buying up big...nedless to say I was kicking myself
...so some similarities, the big difference here today being that A40 is starting from an all-time LOW/ extreme oversold territory...a 50% drop in SP in a 2 months period -- is just insane for what we know about A40, regardless of the hic-ups
Therefore, starting from such a beaten down SP, it could be the LIT fund, but could be a number of other funds that are active in this space...they would all be aware of the massive discount the SP is trading at currently, and todays announcement has confirmed that a lot of money (potentially) will be made, and I am sure they also know there are other funds thinking the same way and will not wait until the SP recovers to where it should be ~0.35c, after today's announcement ~0.40c would be fairly realistic.
I know a lot of ppl will have a bit of a laugh when they read 0.40... I understand and I am fully aware of what the mind can do to a person during a relatively short period of time (in the scheme of things)..but when it comes to money and you see your value decrease by a staggering 50% in 2 months, ppl seem to quickly accept defeat and ignore all the research they have done in the 1st place which must have presented them a good buying opportunity a 0.30-0.40c just a couple of months ago....040c is fair value and we'll be back there in no time...remember we are now a lot further advanced than 2 months ago.
