I agree, i also heavily agree with @dazatroN.
I have traded CLA many times over the past few months, was holding nothing up until a week ago, but when the momentum came and did not disappear, i took an ok sized holding couple of days prior to the TH. The company has been hinting on an acquisition, i was hoping it would be gold.
Then this morning wow, i actually thought this was a strong acquisition, however, a profit is profit and i sold near 90% of my holding near open.
To be honest i was shocked that this closed where it did (happy though), all i can think of is the enormous amount of inexperienced newbie daytraders that have no idea what they are doing.
Let me explain my thinking...Here we have CLA with $5.9 Million cash, Nil debt and a MC of just over $7Million.
They announce today ...
"Celsius enters Binding Heads of Agreement to acquire 100% of the Cullarin West Project in the Lachlan Fold Belt, NSW, from Syndicate Minerals for 20 million Celsius shares.
Adjacent to and along strike of Sky Metals’ (ASX:SKY) Cullarin discovery (93 m @ 4.24 g/t gold) ".
This grade is a very strong 93metres ...
"With prevailing gold prices reaching historic highs the extensive gold mining history of the Lachlan Fold Belt has received fresh attention. In addition to Sky’s intensive drilling programme at Hume historic gold mines such as Stuart Town, Mt Adrah and Adelong have been recently acquired by new owners (ASX.KAU, ASX.FRN and ASX.DDD respectively). Alkane’s Boda discovery has also sparked fresh exploration for Ordovician-aged copper-gold porphyry systems by companies like Magmatic Resources, DevEx Resources, Godolphin Resources, Krakatoa Resources, Argent Minerals and Kincora Copper (in JV with Rarex Ltd). "
the Lachlan Fold Belt also hosts the giant Newcrest Cardia Hill mine...
So in short, given CLA extremely strong cash position( 21 qtrs of cash left) Nil debt and acquiring this solid gold project with a mere issue of 23million shares, i thought this was one of the best gold acquisitions of all the recent small cap gold acquisitions..The lachlan Fold Belt is really starting to heat up with ALK and SKY..
I managed to grab a few shares back late in the day, but only holding a shadow of what i held at open today, but i , like @dazatroN, will be buying up here too at this cash backed level..I believe CLA will shortly bring to the market some historic data, and with that we could see CLA shares skyrocket..
I look at the recent FAU acquisition yesterday again just by pure luck i got out near the top yesterday, complete fluke...FAU have 500K in the bank with a forecast 500K spend this quarter..they are out of cash now, they bring on a crappy 80% gold project, with NO exploration permits in place, and all dependent on a raise...Then today TH for CR, and yet here we have CLA, drowning in cash, and the market reacts this way...Crazy times but with these crazy times comes great opportunity like it did for me today and to be honest that was another complete jag/ fluke i traded this well..(normally i stuff things up lol)..
Just my thoughts.
drifta
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