i assume that you are speaking about the gap in the mid 7s? The Gap theory is psychologically embedded into the minds of 70% of retail traders and taken advantage of by the more in tune investors / traders and profs. Gaps don't always need to be filled and if they are formed through strength in volume and the SP fires ahead, they are generally breakaway and forgotten. Ive been involve with a number of stocks of which gaps have never been filled; of course many do.
I've taken advantage of many a gap handout, but when doing so, one needs to think if the risk in selling with the lemmings and picking up again lower is worth it, by selling and sitting on the side line or positioning your buy order just above the gap and wait to be filled at this lower price.
The biggest question i ask myself is , 'does that gap place the company in an unrealistic MC valuation pocket' and where in regard to your valuation of company MC has the gap occurred ? considering the progress the company has made, cash on hand, tenements; personally i feel that mid 7s, circa $35m MC is nuts and so I've confidently rebuilt a position from mid 9s and up to 12.5c.
Most retail imo don't have a clue about mine exploration operations; I've found the LCL anns to date as being very positive, as they have strategically stepped out the bores and now close back in to what seems likely to net a porphyry. ; unfortunately with latest ball tearing rise of a number of exploration gold stocks SP due to what's clearly been in a number of hit and missing nugget piercings with a 100mm casing that the companies then batched up , sent to the market whilst wiping their brow and ended up rocketing the SP. Investors seem to get all barred up with a 20g/t for 2 meters from 100m, as opposed to a 0.5g/t from shallow and for 100m....., tagging gold consistency at depth and on spacing if far better than some of these high grade results which have been spilled into the market of late and sending companies MC up by multiplies (IMO most of these companies will crash and burn hard).....but as ive said i found the anns good; BUT i sold out on these anns, because quite frankly in my opinion, most retail couldn't digest the anns and all they saw was lower grades; so many of the more in tune traders would have bailed also knowing which way the lemmings were going to flow which led to the SP avalanche; theres no use in swimming against the current in the stockmarket.
Sell and watch from the sides or taken that lower buy order position ; personally i think its better to buy off screen if you want to buy lower, so as not to add to an inflating visual buy order volume.
personally i don't see LCL in the 35m MC zone , i dont see the Griffon vultures lined up just above the gap either, so therefore i think my view is reasonable in at least considering minimum MC whilst also considering the aforementioned ,progress , cash on hand, progress and likely positive results .
The SP testing , stamping on and holding mid 9s was good enough for me. Personally i think LCL should be up around the 17c mark as it stands; 70m+ MC if you look around at the values of other explorers to date. a bit more confirmation on gold and i think LCL will start tracking back towards that 15c mark pretty fast.
Remember LCL has positioned bores 'outskirt' and working in to what looks to in towards porphyry...so chances are these results will excite the market, sending it into the 20s at least. failing that , personally i still dont think that mid 7s gap will be filled.
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