'Impeccable governance' - well good luck with that one!
It took me quite a few years in the sharemarket and some big losses before I realised that the character and quality of people running mining companies is varied, to put it mildly. They may have talents different from the majority of people, but on the whole they have some pretty extreme characteristics, some good, some bad, but greed for success, money etc. being some of them, and don't we, as investors, share and support those characteristics? 'Impeccable' is certainly not a word I would use in context with the mining industry, even if it isn't gold, but REEs being mined.
Just have a look at how long it took 'Twiggy' to live down the losses he made long ago, because he upset so many 'investors' and even then, it wasn't really his fault, yet he was hounded and his character was smeared by local journalists here in WA for years. Now, of course, he can't do wrong, because he's a success.
I had an investment in a company which shall remain nameless, where the s.p. tumbled because one of the directors was so greedy he 'owned' millions of shares on margin, the GFC hit and the inevitable margin calls came, the s.p. tumbled, a deal was made in the end to on-sell them as a packet to a finance company of sorts (don't remember the details), but this one action by a director had a profound effect on the s.p. - I sold and lost big-time, still haven't recovered that loss fully. That company's s.p. is finally on the way up - but I won't touch it any more. I also did some research on this particular director (too late) - which was incredibly instructive, did some more research on others - and came to the conclusions above.
My mantra now is: select a hot sector, make up watch lists, keep checking the charts and other relevant information (daily volume, international news, market reports and prices in the sector etc.), but forget about the 'tabloid' aspects of the "Lives and Loves of Mining CEOs".
So far, Lynas has performed well.
Cheers
Taurisk
LYC Price at posting:
$1.82 Sentiment: Hold Disclosure: Held
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