I don't know why it's being sold down, I'd hate to think there is something that is being withheld, although I don't believe there is. I accept that today was a down day, but BRM is being hammered way more than other junior iron ore stocks, yet we keep getting reminded in investor presentation how undervalued it is. Why do so few in the market want to jump on board BRM?
If there is a 50% retrace from it's last high, and which isn't uncommon(?), then $1.50 here we come.
I wonder how many of the recent investors from the placement have cut their losses and dumped the stock with a view to perhaps getting back in at a cheaper price? Some of those sells today were pretty large parcels that aren't your average mum and dad investor.
I'm personally getting a little wary of WR's claims that the detrital is a saleable product that won't attract penalties. No-one has been able to show contracts where steel mills are accepting ore with more than 4% alumina without penalty. RIO is only negotiating offtake agreements where the junior has good grade ore, I expect BHP will be the same. I want WR to start providing some proof that detrital is saleable to steel mills and/or acceptable for offtake agreements, because at the moment, the market isn't taking his word.
BRM Price at posting:
0.0¢ Sentiment: None Disclosure: Held
