Can go anyway tomorrow.
On the sellers side:
- Lots of shareholders who have been on this for a long time will wake up to the news and look at exiting.
- Another fall on Dow will bring in more sellers.
- Any of the above may bring in the profit-takers
On the buy side:
- Sentiment will bring in lots of buyers.
- the 'Twiggy' factor
- the value equation - still lots of upside.
Some may debate whether a $110m market cap is justified on a conceptual target. I normally would scoff at that myself.
SDL is an interesting case study. Was valued at 1.8b by Gindalbie based on a conceptual target of 1bt at 62% Fe in a risky country in Africa with no infrastructure and 300kms of jungle to traverse to the ocean.
Whilst FDL haven't drilled a single hole there is probably a lot of confidence in FDL's target resource given FMG's discovery alongside it.
It's going to be a nervous wait until tomorrow!
FDL
flinders diamonds limited
