You have every right to be concerned,in my opinion. The negative divergence between SP and fundamentals does pose an interesting question. My best answer is that they were on their way to 10c during the last upswing, when suddenly they sprung on the market this acquisition in Spain.
I said immediately that the market would react negatively, at least in the short term, and that is what happened. This is not crystal ball stuff - a company mining a very difficult mineral, just on the verge of profitability, extends itself with a troubled operation on the other side of the world.Coupled with the number of tungsten mines that have failed in recent history, its hardly surprising that more than a few decided this wasnt for them.
Others disagree but I for one would have far preferred that they put the brakes on buying anything for a while, ramp up production, continue drilling the Mt Carbine site until the resource is fully accounted for AND then go looking with their OWN cash for acquisitions. Would it have been too late then - no one can say. But you can guarantee the SP would be looking a lot healthier than the current daily slippage and double top it has made recently that will have chartists giving it a wide berth.
And yeah, Im still in. The SP fell a little too fast to cash out.
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