@oldbull26@FrestootnikI am also thinking the creep accumulation but either way one never knows what they will ultimately decide.
This time around, the TO of DGO is a lot smarter, opportunism I suspect on a falling GP. Traditionally in the past mergers & acquisitions take place at the top. Having said that if you look at this gold space, the moving up the tiers of production measure among the small players in the past occured on occurs with a strong trending XAU
AUD. This trend is still
up.
There are not many potentials that when geared up for production is in the top tier producers, most have either been TO or bought from big foreign players.
A few years back I decided around the early days of DEG to place some bet on BGL which I thought was a no brainer moving up the production chain. Literally would have taken 2 full years of sitting to just sort of break even. I would have to go back on the records on GOR, SLR, EVN to see how far I had to wait passively if I had stuck to this strategy.
Since this is a chart TA discussion, the passive waiting period could be the opportunity cost v a timely picking of levels based on whatever TA tools of trade and get out with a smaller loss and then reload when it triggers another opportunity. It is futile to compare the ad-hoc opportunity because sometimes patience rewards against the panic selling while other times it save the bacon. Usually when on the right side of the trend, it makes the psychology of holding so much easier.
As an ongoing discussion, compare CMM against GOR, SLR, EVN, NST from those I have or had exposure and you can see why CMM is at the ATH. With the others depending on entry date, it requires the tools of TA to get the better return v dip buying on a strong bull trend.
Alas I did not stay convicted giving away a handsome 101% paper gain to getting out with a token 7% only to see it reverse and ATH! A classic mistake of not getting out at the top but at the bottom! This brings on further discussion of exit strategy which is another matter.
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