LOM's shareprice is a forward looking indicator.
The price will rise on "new" news (ie. news not already known by the market).
News like today's diamond sales are already priced into the current shareprice.
Traders often use news events to lock in their profits (buy the rumour, sell the fact).
Great alluvial diamond finds and sales were even occurring when the shareprice was 17c with little result.
Big shareprice jumps will now be determined by kimberlite news.
Right now, it is a very kimberlite news driven stock.
It is very hard to anticipate by chart these news driven events.
Therefore, it is very hard to give price targets without knowing the content of the upcoming news.
So really the price will be determined by the geology.
Geological progress and methods regarding economic kimberlite are far better than last year.
So in my opinion, you cannot simply correlate last year's movements to this years.
Economic kimberlite deduction will be determined over the coming weeks and months.
My investment decision was based around the geology of the lease
and the subtle signs that Miles Kennedy gives about exploration progess.
These have not changed (they've never been better) and I am comfortable with my position.
I have no intention of selling as I would like to reduce CGT by holding greater than 1 year.
I expect the share price to be much higher by then based on my own research and analysis.
Hope this helps.
Cheers
eCat
LOM Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
