Why you shouldn't always follow the crowd and expect they know...

Why you shouldn't always follow the crowd and expect they know something that you don't;
Yesterday, the LPI price continued lower from a 46c high the prior day to close at 41.5. That's despite the company confirming they were in talks on a deal rumoured to be at 50c. The company said that price was incorrect. I took that to mean the price was likely to be negotiated higher. The price fell steadily from 46 to close on yesterday's low of 41.5c .



This morning LPI announced a deal with a 57c price. The stock opened at 54c. It doesn't always pay to be a sheep!

It's been a terrible 2 year period for small caps. That includes in the US market.



The US large caps have done much better and for that market the Sep/Oct correction looks like it is probably finished.



So, is the small cap correction overdone and ready to turn higher??? Lion Selection Group are small cap investor specialists.

"You may be familiar with the mining clock, an invention of listed small cap investors Lion Selection Group (ASX:LSX) associated with geologist and investment doyen Hedley Widdup."
"Hedley Widdup has already warned of a liquidity crunch seen earlier this year as small cap resources stocks fell off a cliff, bringing previously boundless valuations for pre-resource or pre-development players back to Earth.Now that we’re back to the low value end of the cycle, Lion thinks it’s time to stock up."

..."But it’s boss Robin Widdup’s comments on the broader market that will make investors sit up and take notice.“Lion closely watches the mining cycle,” he said.“We haven’t updated the Lion clock time, but are certain that it is now after midnight, and we are seeing widespread examples of funding pressure which is generating attractively priced opportunities."

https://unauthorised investment advice/resources/monsters-of-rock-the-mining-clock-is-after-midnight-as-major-small-caps-investors-piles-in-to-gold-juniors/

While that funding pressure has possibly contributed to delaying MNB's funding, our advantage is the relatively small funding requirement. After yesterday's news, we only have up to US$12mill left to fund now on a project with an after tax NPV of well over A$300mill at a base case TSP price assumption. That last US$12mill funding shouldn't be too hard to finish off now, especially when they still have around $8mill in the bank and eager offtake partners (one signed and one asking for documentation).