I must admit that I was surprised that yesterdays share price did not increase further and close further ... based on this extraordinary (will possibly become ordinary in the future) announcement.
I was trying to fathom why this was the case last night and concluded the following:
1. Current LOM followers and believers are already loaded up with LOM shares and options to a level that they are comfortable (or should I say are uncomfortable
) with.
2. Although news yesterday attracted a lot of new attention to LOM ... these new potential investors would not have fully understood the story and the potential. They most likely would have applied the ASIC "If it's too good to be true ... it most probably is" motto and been a little hesitant to invest large amounts of money. The sovereign risk that use to exist in Africa and Angola potentially also deterred some investors.
3. The fact that the share price did not react much to the fantastic announcement (possible due to day traders who would have had their eye on LOM yesterday) most likely reinforced and reiterated point 2 above.
Moving forward ... with further research and a better understanding of LOM, more great future announcements of diamond finds, understanding the potential and what LOM have here and feeling more comfortable with investing in LOM shares and options ... these new potential investors will start investing in LOM ... with the more astute ones moving in first.
Every announcement thereafter will simply reinforce that they made a good decision.
This will then create a slow and steady rising share price for this unique, professional and diligent "small cap" achiever ... which is what we want as it will not attract the attention of the da traders and short term investors / profit takers.
I suspect that the above will start happening today ... Well done to all LOM holders and enjoy.
Zippy1
