Good buying under 20c, page-36

There’s nothing quite like being in the eye if the storm, just type in diamond news - and the sector is clearly under pressure.

plenty of challenges ahead:

https://www.*.co.uk/companies/news/213406/petra-diamonds-shares-lose-their-shine-as-decline-in-diamond-prices-overshadow-improved-revenues-213406.html

the solution is prudent financial management, and being profitable. HQ Diamond space is clearly the only place to be, the other High Debt marginal producers are going to have a tough time. We have one beacon of hope, and I bet Stanley is putting in a full week these days, being a major SH and on the board he’s one of us. So we’re not alone.

This is a last man standing game, prudent financial management matched with backers with a long term focus is the only means of survival. As for Petra...well it’s a debt management game from here - good luck with that one.

In some way the recent heavy selling in LOM might be explained by what is happening in the sector right now.

I like to buy straw hats in winter, and umbrellas in summer. So I still like LOM under 20c - even with yesterday’s capitulation, the sector is out of favour, with most probably more bad news to come from high debt marginal players.

good luck LOMers, it’s a tough mkt right now, the pain is clearly out there, at some point in time the mkt will turn. Stock looks cheap under 20c - but the sector is struggling...so I’ll speculate and guess that we probably haven’t seen the last of the heavy selling. But I will also speculate that the smartest guys in the room are buying right now.