Hi Guys,
First post here.
Been watching DCN from 2015.
I only started taking position after DCN's third reincarnation. After that 100 Million raise in April, it was a confirmation that the institutional money still believed in the story. Since then I have queitly accumulated some position.
Last year I heard some whispers that SLR was looking into DCN. This is long before Leigh Junk joined DCN and still was a SLR director. Lo behold, few months later Leigh Junk joined DCN. I started getting a feel of a DRM story repeating. It is still a speculation but something will happen. The sector is ripe for mergers and acquisitions. Today's NST and SAR announcment is an indication. SLR market cap has run ahead of itself, so I think we could be for some surprise. I only hope this time it happens at a premium.
( unlike DRM merger)
There has been quite an accumulation from institutions. I have tested myself. Everytime I placed a large sell order, buy orders appeared mysteriously. The institutions have accumulated at a range of 36-33 cents occassionaly pushing it down to 32c. Today is a recogniton day, which all of us believers had an idea was happening behind the scenes. DCN operation is improving by the day. The company has made good money in September quarter inspite of a large portion of production assigned to a terrible hedge. The hedging looks better from here on. AISC will be between 1500-1600. Market cap at $200 million is very very cheap. Some explorers have lot higher market cap on some drilling news. Share holders with a long term view should not be tempted to sell here. Today is only the beginning. My good guess is the share price will start trending north from here. It will spend some time at or around the 40 mark and with this consistent result, should be above 50c by December quarter update. Time and patience will reward shareholders.
I've done all the buying I could , now time for me to sit tight. Do nothing. Besides it's much fun to see the share price rise without doing anything.
My take of what is happening shown in below chart.
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