DUE DILIGENCE AND INFORMATION…I am not a short-term trader, and I would not become one even if I had access to a platform like Bloomberg. Those banks and brokers and professionals not only have Bloomberg terminals for better information (which has different levels of access and speed), but they also have lower commissions, faster execution, better algorhythms, and more cash and capital than you do. The vast majority of short-term traders are going to lose to these guys. They will beat you, in the long run.
We do not see the NET LONG/SHORT position of these traders; we do not know their strategy or methods; we do not know their short or long term trading objectives. We also do not see what these parties are doing on the TSX and OTC.
So I do not see how one can base a trading strategy on the data. One can consider it as a factor, but that is about all.
BLOOMBERG TAKEAWAYS…the data provided by Fozza has very important information, even if we cannot base a short-term trading strategy on it. It shows that an impressive list of big-time financial entities thinks highly enough about CLQ to put money into it.
This is in stark contrast to the mostly non-existent public coverage of the company. Tells you something. The very fact that UBS, JPM, Goldman-Sachs, and the rest are trading CLQ at all, means they are accumulating.
Clean Teq appointed Mandatory Lead Arrangers in November. These are international bankers who are going to raise money for Sunrise.
Who do you think they talk to to find parking places for the securities they are committing to ?
They are going to talk to the entities that are on the list Fozza published, that’s who.
“Hi Giant Squid, this is Pierre from underwriting at Societe Generale. Would you like $50 mil on a battery metal play in Australia? We got a June close. I’ve got a couple of hundred mil on a CR to place.
This one is going to be good, I’m offering you a big piece of it. Best chap in the mining biz is all-in, and the Chinese are too. Hot ticket. You better let me know fast, though. We have a deadline, end of May.”
So Giant Squid knows something is up and duly reports it to his trading desk. “Hey I just got a call from Froggie over at Sogen. Something is up with that Friedburg guy, battery materials in the outback.
It’s gonna hit in June. Put the bots on it and get a couple mil cheap for the house. We are probably going in with 50 mil to sell to the retail slobs. Battery materials are hot.”
So the guys on the list already know something is going to happen with CLQ, and they know when. But then, we do, too. We just didn’t get a phone call from Pierre at Societe Generale. We got a press release in November.
ZERO COST INFO…DYOR One thing we can do to get an advantage is to have a long term view, and read carefully all of the information that is publicly available about our targets and think about it. This costs nothing. Yet it is clear that the great many people do not do this. Neither do the big money managers at Citicorp and JPM. Pierre from Societe Generale didn’t either, he is a salesman.
But us little people have to know what we are buying and withstand the ups and downs. We have to know what we have got, and what its value is, or we will get blown out when the big guys shake the tree.
PORT-A-CAMP SPECULATIONS…I know some of my speculations and conclusions seem a little far-out. I admit to having a vivid imagination. One poster made a joke of me receiving messages in “secret codes from RF”. Ha ha…no harm done, no offense taken.
And I admit the fact that CLQ announced a 30% increase in the bunk bed capacity at the Port-A-Camp does not necessarily automatically imply a 30% increase in labor costs, or even an all-out effort to get done. But this is not a secret code or a flight of fancy. The clues and information are being released in plain English.
It is for us to figure out why it is significant, if we are inclined, and what it means about the things we would like to know, like capex and construction time, which CLQ is unable to tell us straightaway.
CLQ is telling us they are going full-out to get the project done fast.
What do you think it means that the camp is being enlarged to hold 30% more people ? I do not need a detailed estimate of the overtime wages spelled out. They have been hiring people for months, with no FID and no DFS. Now they are adding another 300 people. You do not need a vivid imagination to figure it out.
Another thing: It has not been hidden in code that CLQ is dead serious about accelerating the project. From the Pengxin announcement over a year ago, “acceleration of the project” has been a regular expression in their news releases and investor presentations. It was stated when Pengxin came in as a strategic partner, that the money was to accelerate the project.
People just do not pay attention, they are put to sleep by the Corporate Minerese News Release Dialect, which is spoken fluently (but sparingly) by CLQ.
JUST PUT THEM ON IGNORE in general, I think contrary points of view should be heard and answered. But on the other hand, we don’t want to read things that make our blood boil, and sometimes people will just arrive at different opinions that cannot be reconciled. If someone really detests a particular poster the best thing is to put that poster on IGNORE. I have done this with many posters, and anyone is welcome to IGNORE Sallywoofs.
Occasionally you see someone responding to a post you cannot read because the poster is on IGNORE. It is a little disorienting, but on balance it is the best solution. A little radioactivity won’t hurt you, but an overdose makes you feel sick.
FOZZA “DA MAN”…we come to respect or disrespect other posters for all kinds of reasons.
A while back Fozza made a post titled “13.20 Valuation”, based on an evaluation of the scandium resource at CLQ.
He was not predicting that the stock would hit $13.20, he was just sort of blinking at his own calculations and looking for feedback on where he was screwing up, what he was missing, where his calculations might have gone astray.
I loved the fact that he had the initiative to do his own research, look at the results, post them, and invite feedback, and thereby run the risk of getting a whole lot of ridicule and looking stupid.
Fozza got high marks from me on this: here’s a guy who does his own calculations and asks questions, even if they make him look a little foolish. He thinks for himself.
Ha-ha. Poor naïve Fozza. Right.
Then we come to find out the guy has a $25k per year Bloomberg terminal, like those big-time bad-old institutions we speculate about all the time.
Way to go, Fozz. When you make a comment about “the big end of town”, I’ll be listening to what you have to say.
CLQ Price at posting:
$1.08 Sentiment: Buy Disclosure: Held
(20min delay)