Good news.
HHL’s holding before their small sale was 14.78% of DRM. Then with their small sale in May, their holding dropped to 13.75%. Now it is even more than 15% at 15.06%
A couple of us on the forum discussed the issue of how much HHL can hold and we came to the conclusion that there are two 15% rules – HHL’s High conviction fund restricts itself to 15% of its funds in one company based on cost of the stock and second rule is that all HHL’s funds restrict themselves to a total of 15% of a company.
http://hotcopper.com.au/threads/peter-halls-doray-call.2700206/page-16?post_id=17025071
I mentioned there that I personally felt that HHL should not be too rigid on their 15% of a company criterion. Nevertheless I do feel that they would be rigid on this criterion to some extent.
Anyway, nice to see that they actually own more than 15% of DRM now (although marginally over 15%) and in any case, they are at their peak level.
I was a little surprised with their small sale last month because at first glance, it made no sense tome that astute early bird investors like HHL who have a lot of patience to hold on till full value is realized, would sell even such a small amount, when positive news flow seems very likely in the medium term.
I mentioned last week that one thought running through my mind would be that they were giving other instos a chance to join in. Please note that this is just a thought in my head and nothing really conclusive to suggest anything. There has however been a lot of bot activity and hence the only thing I can assume is that some other insto/s are coming on (and were hence capping DRM), and HHL was obliging. I simply could not think of any reason why HHL would sell otherwise when we are so close to ramp up of production at Deflector, and also as we get closer to GDXJ inclusion. So glad they’ve bought their stock back again.
DRM fell with the rest of the goldies but the fall was nothing compared to the others and was thus one of the best if not the best of the mainstream well known goldies.
Not much to complain about and waiting patiently for what I think is an inevitable boost at some time in the medium term future.
