Easy place to sell but the real question right now is Cracking .14c !!!???
Cracking a key decision level by over 6% is very, very important when the rubber band snaps back in Peer Imbalances like this one. Although this particular re-evaluation is very rare because of competent management, sound share structure and so forth.
The market was shooting itself in the foot in my opinion selling against Positive news flow and Positive news flow for companies in the same industry and area??? I've never seen the Peer imbalance this extreme not since the Dot.Com bubble. I think the macro economic forces here are colossal; here is an 40 minute interview that I found fascinating on Global Politics, the point of it being that Graphite is a safe haven the the wealthy will flee into now before the crash, that is why they are wealthy, they move before the herd!
http://www.youtube.com/watch?v=BrDMRe5850w
Truly it is very unusual. a company with SYR potential sent to the dog-house because the market was hating on them for going down one investment path, and then rejecting it based on sovereign risk/corruption. The ire should have been focused on Mongolia/China not MRL but hey, now we see a true consolidation/re-evaluation and nothing on earth can stop the invisible hand of the market. The CR is just a tiny drop in the bucket, they could raise double and it would not even effect the re-evaluation. Weird huh?
More messages for the ASX:
"Hey guys it is not us it was the one armed man!"
"The market ate my homework!"
"All aboard the Graphite train!"
Ha! Anyway this just early days here, as a Fundamental investor I am looking at the long term slow trends and forces that manifest in volatility day to day. Because people want compounding returns here they are looking for the market to realize the true value and worth of these positions.
What should MRL do going forwards in my opinion?
1/ Develop friendships and partnerships with companies working in the area so that all my win big including corporate partnerships with Australian battery/solar and other industries.
2/ Acquire the target licenses before 2015 when mining is going to commence.
3/ Transparency is also engagement with media and industry gatherings presenting consistent and reliable news flow. It was a good strategy to say nothing spooking the market in a way but now you must sooth and reassure bulls.
4/ Hold tight reins on your lawyers/management in Sri Lanka. They must be held under a tight grip with oversight. Oversight is one of the failings in many of these Minnows because they assume that people act in their own self interest, as Mongolia has schooled us, people will cut their nose off to spite their face. An implementation of oversight watching Sri Lankan management with Australian managers would be like nitro to the share price, that alone may clear .70c!
5/ Learn from SYR, BBR and anyone else, become teachers of the market about Vein Graphite because it is so special, why is it so special, what are the technologies that you can partner with now? Blue skies ahead in my opinion.
Do these things and truly amazing things can follow once you hit the .90 to 1.20 range which is more then reasonable for these companies.
Finally, it is essential to restrain greed/excitement...
Yes you are on to a good thing, a unique thing, a weird re-evaluation. Just stay focused on your targets, communication and strict financial discipline. Sometimes when these big movements of the market occur smaller companies can become focused on what they get out of it not what the share holders get out of it. Stay caring about the shareholders and they will stay with you. We see this in SYR, they have kept their eye on their shareholders and even without ore samples the long-termers stayed the course and now look at them?
Taking profits is healthy LB, myself I will compound and accumulate for many more months to come :) There are so many eyes right now on MRL waiting for it to crack .14, once it does the market will counter-balance it against its closest peers like BBR in my opinion.
Kind Regards
PS - All my thoughts and opinions are my own and could be completely wrong. Do your own research; I share this for fun and intellectual discussion and interest only, what do you think?
MRF Price at posting:
6.8¢ Sentiment: LT Buy Disclosure: Held
