Hi
@flaming
Apologies for delayed reply. I’m mostly not at computer during day and reply at end of day.
Well to answer your question, unfortunately, I’m not in a position to talk about DRM FA. My approach on goldies has changed quite a bit since the sharp 2016 correction in goldies and DRM was one of the stocks which disappointed me the most. If you check my old analysis on DRM some years back, it was extremely detailed and DRM was quite pleasing as it fared reasonably well till mid 2016 (including multi year highs) until Deflector was coming into production. I don’t think there were too many loose ends with my analysis at that time, and a few others got fooled by DRM then, including Hunter Hall.
It takes only 1 mistake to get it wrong with an individual stock.
Ever since then and after the correction in goldies, I’ve preferred to be agnostic to individual goldies and am continuously moving in and out based on the
experience and comments of several well known HC commenters (including you), some basic TA including support and resistance, and of course my favourite - gold macro analysis as a whole.
I’ve recently had an eye on DRM as a quick look at the chart shows
30 cents as a possibly crucial level which could be strong support / resistance, and if I get back in, that would be 1 important reason.
Above approach of gold macro+support/resistance of individual stock has served me reasonably well. At least, it is far more peaceful than watching the screen of 1 stock all day, hoping that it will do something big.
An eg which you would be familiar with I’m sure is SLR, as I’ve been reading your comments there. I put in a small amount there around 35 as I thought that could be possible support and very recently sold out at 64.5 as I thought it could make a double top (which it eventually did).
I’m very exhausted of following individual FA of goldies in detail, since gold is too unpredictable in itself and prefer to rely a bit on FA analysis of many other commenters these days.
Overall on the gold front, as I mentioned last year and even some months’ back on the BDR thread, IMO, a
strong setup for gold to make multi year highs still exists. However, it must be noted that the setup existed since last year, but seems to be failing at the final hurdle.
Taking potentially favourable gold macro into consideration, I’ve been cautiously putting an equivalent amount of money in several mainstream goldies (I’d consider DRM one too) over last few months, and am keeping some funds spare to decide again around the time of Fed reserve meeting.
I'll try to put up an overall gold analysis if I believe that a bigger move in imminent, but I don't think it would hurt people to already have some gold exposure as next upwards move in gold would of course be major and goldies might rally too hard to get a favourable lower priced entry if one waits till the end.
