Hi @
@slick , good point to wait on the turn to buy back in. WKT very very unpredictable on the charts, TA helps for great entries.
This is going off TA into FA, but I am trying to justify why I think holding is a good option IMO, DYOR :
I agree with you: normally funding announcements have not had a big effect on stock prices, and rightly so, historically funding agreements have almost never benefited shareholders, often giving away a huge part of the company, then the directors taking their cut before the entire thing is shorted. NCZ.AX comes to mind, this one already plummeting, SYRAH 2.0 technically maybe ? Same Management happy to take their cut and now shorting it all the way to oblivion, destroying shareholder value. Still like lambs to the slaughter they follow into the next deal MEI.AX. Go figure.
But why do I think WKT is different, why do I have confidence a few reasons why:- WKT's organised top 40 with Mike Eliot representing shareholder interest. This means that the financing deal will be of benefit to the shareholders. Mike holds a very large stake in the company and I had the honour of speaking to Mike. I can tell you that nothing positive emerged from our conversation other than a feeling that we are in good hands, even with the SP dropping the way it is. He is a terrific person to talk to if you have any questions about WKT, and has the confidence to not oversell you on WKT, true exec IMO.
- So far the journey has been hard, Tanzanian jurisdiction has been hard to work with in the past, current institutions / banks / sophisticated investors have often been hesitant with investing in Tanzania. But these sentiments have been shaken off in 2018, and WKT is almost at the head of the que with its mining licence being granted first. There is no doubt in my mind that the process of funding will also be the same. Unfortunately this is also why funding is taking so long. Now once funding is secured, we will truely shake off the last bit of doubt that have plagued this jurisdiction and I predict that the the SP will turn and not stop until we hit fair value. Which I will not mention but for everyone else to decide. The potential for growth, expansion etc of Linda jumbo is a further bonus that has not been taken into account yet. More work and reasons based on Jurisdiction:
- Last but not least where do you find figures like this ?Anyone reading the DFS can see that the figures outlined have been discounted to take into account a downtrending market, with lower than normal basket prices and factoring in other provisions to make some of these figures very conservative. They also have money in the bank with more money coming in from options expiring towards the end of the year.
Just a matter of time now before we see all this reflected on the charts.
AIMO
(20min delay)