This stock is just following the same path as every other "hot tip" stock from the newsletter folks .
From start of newsletter coverage : (usually a week after the results , so they can buy up ahead of the recommendation)
1.Initial spike - Sheep come in, smart money lock in profits (smart money are the ones that bought in based on the drill report , not someones elses interpretations of it)
2. Decent pullpack circa 25-30% from initial peak - sheep look for the exit and start climbing over each other
3. Stall out at around retrace level for a while , smart money accumulate from the weak hands.
Then hopefully....
4. Confirmation of drill results = sustained move upwards and rerating much higher
Further to the recent drilling:
Mineralisation , the likes of what has already been reported by GMR , very rarely occurs in isolation within a sheer zone , and being so shallow , is probably the top of a much larger system that lies below. Tip of the iceberg if you will. (this is the theory at least!)
And although they might not get a repeat hit straight away , the probabilty of reoccurances in the area is definitely in their favour.
I'm expecting next drill results will be more inline with BF averages (say around 10m to 20m @ 2gt - 4gt )maybe with some smaller /higher grade intersections.
It could take some time before they understand the geometry of system below and are able to effectively point the drill bit in the right direction.
A great speccie for the long term , try and build a free carry and let it ride. And don't get carried away.
Buy zone looks to me at between 20c - 24c for now .
If the results take a few more weeks to filter through , you may get 18c - 20c as the buzz dies down and impatience sets in.
GMR Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
