I can only really guess the reason. My 2 cents worth is that a lot of retail punters (yep punters) poorly understand lithium or minerals exploration and have not undertaken much if any research and when a stock is not covered by any brokers where can a punter find good analysis on a stock. Consequently when a company puts out an announcement like VSR did which looks really positive, the punters think this is a winner and up-ramp the stock which influences others to up-ramp the stock and the ramping snowballs into a sort of a frenzy - so retail punters pile into the stock. In this case VSR was also ramping up the potential via media articles eg in stock…head.
Sometimes it’s not what is included in an announcement, it’s what is not that is very important and telling - in this case VSR’s did not mention spodumene once which was very telling. As the old say8ng goes the devil is in the detail.
Frankly, VSR’s management really ramped up expectations.
VSR Price at posting:
4.6¢ Sentiment: None Disclosure: Not Held
