what has changed?, page-7

g'day Mike,

good to hear you're in the LT camp. But I should add a rider that a simple HOLD LT, can also become a problem, as I found out to my loss with OXR.

Yes, we hold LT, BUT we continually review the status of the company for anything that DOES change, that might not be for the better. If this occurs, you then have to weigh up what it means to your long term goal & make decisions accordingly. Also if there is a MAJOR change/announcement, this would cause me to do a complete new DD/DA (Due Diligence/Devil?s Advocate) starting with a clean sheet, on the stock.

Let us use FML as the example.
There has been a change in that we < expected > TI drill results in May. We have now heard in round about ways bits of what is happening on TI; one small black cross to management for this ? they should have made a clarification statement by now. Although I do note they had < Exploration Update > slides 9 & 10 of the preso announced this week. I suspect that to their thinking that is telling us what?s happening at TI & that TI is very difficult, BUT they really did not tell us about that & how it would impact their original expectation, as advised to the market.
Anyway, we have a < change > (albeit a minor one), so it is not too hard to conclude its not a big deal & does not change the value or outcome we see long term with FML. I have always seen TI as cream with a maybe elephant down the track, but most likely just some nice extra oz for production in 2-3 years.
OXR decided to buy ZFX; now that was a huge change. My fatal mistake was to trust management (who had overseen SP rise from 7c to >$4, so reasonable to trust them, I thought). BIG mistake, as we all now know. So from that I modified by investment methods to include what I said above; a full clean sheet DD for any BIG announcement/change. I guess a questionable take over by FML would be a similar case. Maybe a decision to go it alone with Nepean mine, before Coolgardie really humming (130,000++oz & much lower cost). But I would only decide on sell/hold/buy more after that clean sheet DD.

So finding great undervalued stocks like OXR was, & I believe FML is, & holding them long term is what I do. BUT, I now monitor them much more closely & will sell, if the story changes for the worse imo.

The other thing I do (that I did not do with OXR), is buy a specific lot for trading along the way. I am not a great trader, but OXR presented many great trading opportunities over the years, as I expect FML will do as well.

Good luck with your investing.
Cheers,
Ned.