Interesting theory the "nearology" trade. In 2005 I was a broker that assisted in the Monax listing. Took the stock at 20c it ran up to roughly mid 30's. (50% for clients). I didn't sell at the time as the reason I purchased hadn't changed. I recall it coming back to around 13c in June with tax loss selling, so I "loaded up" (buy the dips if the story hasn't changed) and was a Top 10 shareholder (wish I still was). I purchased based on the nearology to Carapateena (about 20km to the North of Punt Hill). Some drill cores were on display that RMG services (Rudy Gomez, worth a google on his story) famously discovered at Carapateena with one of two drill holes. I followed Carapateena as closely as possible, given it was unlisted and had no need to publicly disclose drill results.
RMG received interest from a number of parties, eventually Teck Cominco (Teck Resources) the Canadian miner paid RMG for first purchaser option if Tecks drilling proved viable. In the interim Monax announced some drill results with "visual mineralisation", the core pictures looked great. I believe this announcement which pushed the share price to around 60c, later changed mining company reporting standards.
With Teck drilling and publically listed, I'd check the Canadian exchange for any Teck Carapateena news daily. Due to economic and balance sheet pressure, Teck was looking to divest non-core assets, Carapateena was one of these. They therefore released their exceptional Carapateena drill results on the Toronto Stock Exchange (to attract buyers). When I saw these public results, that day on the ASX was time to "load up more" on Monax" (purely based on nearology). From memory it started around 60c closed around 70c (and was sure to get a speeding ticket). The answer to the speeding ticket was the spectacular drill results 20km to the North, which I made sure Monax became aware of (Teck later sold to Oz Minerals in 2011).
On reopening after the long weekend and some positive press regarding Rudy Gomez's confirmed spectacular find, Monax gapped up and traded in the low dollar range. I exited ironically the purchasing volume was said to have come from some Canadian Resource funds that had listened to the Monax roasdshow that had taken place in Canada. I've always thought you need a reason to hold, a reason to buy and a reason to sell. A run from 13c to $1 based on nearology was not reason enough to hold but reason to take profits.
Fortunately for me Monax was a "life changing" trading share it enabled me to diversify into medium density housing development.
I kept some Monax, wrote them off at the end of each financial year. Sold some around 6c re-purchased via a rights issue at about 5c etc. In December 2018 (having not really followed the market for a while, no longer a Broker), I made a "sentimental" punt purchase for a million shares at .005c. This is now a core holding, whilst keeping and trading a few hundred thousand "rading shares" given the last 6 months of volatility (sometimes poorly).
I guess now my thoughts are AUT is obviously a completely different company to Monax. I'm now more comfortable with AUT than I ever was with Monax (it also helps making 30x investment on paper, but there's still the risk of losing a lot of those unrealised gains). AUT I believe actually has something, whereas MOX was purely a punt on nearology and hoping for good results (which never came). Wrongly or rightly, I believe AUT can be a life changer also. I purchased yesterday a very small amount at 14.5c, was on the bid at 12c today (no luck). I like buying the dips and understand why many would be taking some profit off the table. Sometimes we watch shares too closely.
Apologise for the long rambling (if anyone's still reading). I'd say if you're not comfortable take some profit (no names). I'm swing for the fence on this one (Monax the second coming)! Good luck all.
AUT Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
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