Day Trader’s Aftermarket Lounge 16 July 2020, page-17

Re KRM
Not a wind up. And not passing myself as an expert by any means obviously..

Your a tad harsh there endless.

There are several reasons why someone might see KRM as a trade yesterday/today..

1. Negative EV.
32 million cash/bullion vs mkt cap of 26 mill for an EV of -6 mill.

2. Closed various gaps with yesterday's fall in the chart down to 3.5 cents which would keep many traders away. Bounced off 3.5 support quickly.

3. Company is a gold miner, (Gold =hot right now). Right sector. Producer not explorer and mgmt have acquired a serious horde of dosh. Cash backed companies have always always served me well over the medium term... My theory is that any hack can obtain a good land package in the right area and promote it to bits on nearology but not every small cap can provide experience profitably operating a small mining operation... i.e - if you can operate a small mine you can monetise a small find.... obviously if you find a big boy you can sell it, or it sells itself.. But having the skills to mine is quite the string to ones bow I think.

4. Increasing volumes of late and KRM has shown up on the dtraders radar already.. So people are following.

5. Mkt shake out hits this does not have much room to fall. Downside risk protection is paramount to keeping this trading lark going.




So the chart shows the rising volumes of late, the RSI falling back to neutral, and perhaps even that we have broken out of the down trend... If we haven't yet broken out of the downtrend then I'm afraid Endless is right in terms of the 10 year chart being a bummer.

But my gut tells me mgmt are going to provide the guidance the mkt needs to take this through that 5 cent area just as soon as they reasonably can, and these Covid related issues are not of mgmts making and the mkt should not be judging KRM at a negative EV for something beyond their control when they have had recent success and have shown prudence with their cash pile. Not when Newcrest is at a PE of 30 and Northern star/Evolution a PE of 40.
What I'm seeing is a serious mis pricing of a project..

But apparently I'm a joker.

How's about two little lickys Endless.

You know where they go
You know where they go