high component of heavy rare earth elements, page-42

Hi klem,

I don't know if you play poker, but if you do, you'll understand if I call Mr Yue, 'a chaser'. Everybody plays the game in a different manner. Some people love to chase. Mr Yue got into ORM during the first REE hype. I don't blame him. I got into ORM at the same time too. We had a lead of some good rock samples, so this was the basis for some 'speculative' investment. ORM also cashed up, so it was 'a fair bet'.

Some of us limped in with a few dollars to have a look, Mr Yue decided to go in hard. But now that the drilling results have come through (we've seen the 'flop' in poker terms), our hand doesn't look so good. The game isn't over yet, we've still got a few more cards to see, but the risk is now higher, as we found nothing and some of the money has obviously been spent.

Mr Yue has bought in several times.
Initially, he spent $1.47m at an average of 26.5c.
Then another $301k at an average of 24.5c.
Then $50k at an average of 23.5c.
$352k at an average of 29.5c.
$10k at an average of 23.5c.
$605k at an average of 28.7c.
Lastly, $40k at an average of 26.5c.

For me, it is clear to see that Mr Yue's volume caused the surge in the price, and his continued buying is the reason it hasn't plummeted. From where I stand, it is possibly a 'pump' gone wrong as no one else followed him.

He possibly tried to bluff a win by going all in with a 2 & 7 unsuited, but he got called. Now he has no choice but to keep pumping in more amounts of money, in the hope he gets lucky and hits something.

You've heard the term, 'in for a penny, in for a pound'? Well in this case, it's 'in for a pound, in for another penny'. He stands to lose a lot more if he doesn't go in, than he does, if he goes in for more.

People talk about him being the 'smart money'. I think Director's are the 'smarter money'. Their dealings out trump anyone else. When they sold, that put my focus more on them than on Mr Yue.

Then of course there are the fundamentals. ORM has nothing as of yet. Fundamentals should be first and foremost in a decision to buy, hold or sell a stock.

What people do with their money is their prerogative. After the results, I felt that it wasn't worth it at that price, so I sold. For me, it was a good offer that wouldn't be around for long. The current price drop has so far justified my play.

I've followed ORM for a while and will continue to do so, as I know it well and I'm a holder of MLM. I won't disgard the option of coming back in, but the price will have to be right.