Ann: Winsome to raise up to A$60m to accelerate Canadian projects, page-317

Oh well, this CR did not turn out like last time - why is that?

For me at the time I wrote last post was a hold of 215. When it didn't look like happening, especially when for three days it did a max of 218/219, I exited my positions at 218. Why? Because I got a strong feeling after two failed attempts to cross 220 that this may go down. Calculated risk. One of the reason I didn't post after that because I exited my position. I usually write after exiting, but it was an oversight for me,

So why is it different this time? Why did we touch 185? I think there are number of factors - some related to WR1 and some related to general markets. The general markets and Li sector have retreated in the last two weeks. I do a weekly report on Li sector where I cover 73 ASX Li stocks, and we lost 2% previous week and 6% this week on average - so not a happy hunting ground. The general markets too have not behaved in that time. For those interested here is the link to this week's report -

https://hotcopper.com.au/threads/sya-weekly-report.6951924/#post-66328993

Many believe the theory that SP falls down to CR level. Many times it happens. And all those calling that out are rejoicing. There is never a better feeling than selling it and buying back lower - we all then feel we are geniuses, when it works we shout loudly. When it doesn't, we sit in one corner brooding and the secret lies only with us. So am not surprised with all those saying - I said so. Human nature is to take brownie points when available, especially when your track record is not good that you get many. So its all right from that perspective. Let them have something to rejoice, while they can.

I know there are lot of die hard supporters here who have held for long. I have always like WR1 and if you look thru my diaries for over 1 year, it was always there for me. So is this pullback a realisation that most potential has been met? Honestly I don't think so. But we can lose sight of one thing - once your market caps grows higher, besides your potential there are a number of other factors that come into play. For big caps its a big problem. For medium caps like WR1 its a potential problem. Look at CXO, LTR, SYA and a few others how they are finding it difficult after reaching a stage. They go up, but then fall down - of course the general markets have not helped - but most are nearly 50% down from their highs. Whether we like it or not, there is a pattern there. For me its very necessary that general markets also have to support us. hence when I write, I write a lot about general markets.

There is another theory, which is also credible to certain extent. It is always pretenders who give maximum gain. Small caps playing around nearology, hopes and potential - sometimes they can give a burst in few days which medium/big stocks may take a year to realise. WR1 sometime back was one of the pretenders. It has given that big burst to many. It made a 10 times jump in short time. For it to make another 10 times jump it may not be that easy. But hey, we are not always looking for 10 times. If your money grows by even 25% or 50% in a year that is still a very good return. But many punters are always looking for that elusive stock which gives big gains. Slowly the retail moves out and long term institutions who are happy with 30-50% yearly get in. Then the game changes. I feel we are seeing that transition.
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Personally I got out. I can pick up my shares in CR or lower now. I have not yet bought. I was very tempted at 185, but the only reason I did not buy was due to general markets. I am waiting to see where the general markets/Li sector moves before buying in.
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There is no crystal ball to say what will happen. We all make predictions and hope its right. If markets remain at this level - WR1 could remain here, just under 200. If markets fall, it may follow that. If markets move in next 2 weeks, it will make another attempt to get towards 215 or even 230 which was its favourite level. But people looking to double/triple the money in short term, I feel the time has passed. for those who are happy with steady positive increase, it may fill that potential. Overall I feel the future is bright for WR1. It may move slowly, but steadily. All the best.