don't lose all objectivity, page-6

Casual Investor... no, been investing in the sharemarket for over three decades and saw the gold boom of the seventies and the 87 crash up close. You don't have to be new to the market to lose 15% quickly, you must be new to the market to think that! This current bear market is quite vicious at the low cap end. Can also be great for trading; for example at the same time that I bought Bannerman I bought Nexus and am showing over 50% profit in the same time frame. Risky stocks often provide large percentage moves, both ways of course.

If you think going with the crowd is the way to make money I think you will end up sorely disappointed. You have your strategy and that's fine, but most of the investors I know who have done well have either been countercyclical buyers prepared to wait, or experts at fundamental analysis of a certain sector. There is an implied contradiction in your comment about people buying during the uranium boom because a stock looked cheap. They followed the crowd as you recommend and look what happened. They weren't trying to catch a falling knife. I've bought in during the uranium bust. My downside is the same as theirs, 100%, but my upside is IMO considerably higher.

Of course you can't know everything about a stock. That's why buying it when it is booming can be such a trap. Your comment about the leaders who push stocks during booms and then disappear in bear markets is correct. Your trading conclusions are at odds with such insights. The lesson you should learn from your observation is that you should buy stocks when everyone has given up on them, as the price is a direct byproduct of sentiment. Buying high to sell higher sounds fine in principle, but not if the music stops. My strategy is to buy low and despite your advice I 'll be sticking to my guns on that.

I didn't buy into BMN just because it was at its lows. I also bought because I couldn't find any positive sentiment in the sector, well not on this stock, anyway. I don't care that it has only got a years worth of cash left, because if sentiment in the uranium sector improves before a year is up it won't matter, the price will go up anyway. This is the never ending pattern of the market. All seems hopeless, there are a thousand reasons not to buy a useless stock, and then, presto, a glimmer of hope appears and suddenly everthing has a different complexion. Suddenly no-one cares about funding, it's all about the size of the resource, or rumours of sovereign entities wanting to secure supplies, etc.

As to why I believe sentiment on uranium is likely to change, I have several reasons for that. Fukushima overreaction recedes, oversupply from megatons to megawatts program disappears, number of new reactors coming on stream continues to grow, recessionary pressures on commodities prices ease, environmental concerns over dirty energy sources likely to continue and grow, etc.

Anyway, we will obviously agree to differ, but I thought someone should come on this thread and admit to being a buyer and argue that the sky has already fallen and that the odds from this point are not as bad for this company as this thread would indicate. To use the old saying, 'Rumours of its death are greatly exaggerated'.