While there is strong probability its share price will run up to 15cps in the short term (to what was the 4th wave of the wave 'a' pre-xmas low), that will be a false start.
My count suggests LSR will fall off from 15cps to as low as 7cps before setting up a solid base. Can new buyers hoping for a repeat of HOR's apparently instant gains withstand that?
On a fundamental basis, note that LSR has only just begun exploration. The coy's website if full of .pdf files on where they are, particularly with the Western Block. Well worth a look at them for a perspective of how long this coy will take to get results to market.
Without taking away from the other tenements, the west of De Grussa is where the action is likely to be. It is also bordering HOR's big find. Unfortunately, the Western Block will not be explored for quite a while due to negotiations with native title holders who have not yet settled on terms and conditions for access. T&C's might come tomorrow. Then again, they might not. Ask RWD's Mike Ruane about this subject!
Also note that HOR and SFR's share price did not rocket off into the stratosphere the moment they began exploration. I heard Karl (SFR) say quite clearly that it was entirely possible they'd have completely missed de Grussa if they'd pointed and dug their holes "just a bit that way". They'd have missed the seam entirely! This is an indication of how fraught with risk mining and exploration is. Just because LSR (and PDY) are neighbors of HOR and SFR is no guarantee of success.
What is very likely, beginning today, is for HOR to commence a painful pullback which will serve to dampen enthusiasm for its neighbors who are yet to prove any resource or, perhaps more importantly, gain access to their actual tenements for some time. Native title access is not settled in the west! That bears repeating.
Unlikely to get any support from the party faithful on this perspective. But that's not the point of my contribution. Current shareholders have already made up their minds and are clearly aware of the potential risks. That's why they've already bought in.
Yet many potential shareholders have not made up their minds, which is why they've not yet bought in and are perhaps here looking for alternative viewpoints. Mine is just one of many. And a chart is what it is, so take this with a grain of salt. But watch the movements over the coming weeks carefully. If you see an opportunity, go for it.
When I think of capital as akin to blood, I tend to be far more careful splashing it around. Without blood, you're dead. Same goes for capital. Wasting 10% on hope is 10% that might have gone into another opportunity which really is making strides upward. Anyway, be careful out there, particularly in the current very heated environment.
All the best.
PS Buy sentiment basis my price as listed.
LSR Price at posting:
12.6¢ Sentiment: Buy Disclosure: Not Held
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