why we like the lucapa diamond company report, page-72

LOM is a "pip" traders wet dream. There is an established group harvesting the small fluctuations of micro cap stocks that garner investor interest. They have been doing it for a long time and they buy in early or when the SP dips. They then "sell into" SP rises that occur following positive announcements or other positive events and take profits.

Together these traders will hold substantial parcels of a stock like LOM. Profitable pip trading is a volume business, and requires astute judgement to both pick and manage the ongoing trades to make consistent profits.

Needless to say, they make their money out of retail investors - you're buying shares from them in many cases. It is parasitic and secretive, and feeds mainly on selective micro stocks until the stock graduates or becomes defunct.

Understanding the explorer's development timeline and when to buy an explorer's stock is key - Angola's dry season begins in April! If time is on your side, a good rule of thumb is to put your order in the buy queue at a lower price and then be patient. And you would of course have a close look at the previous 12 months high low data.

This too will pass...