When everyone else is selling, the smarties will see it as a...

When everyone else is selling, the smarties will see it as a time to buy.

Just look at Xstrata's recent lunge at Lonmin, taking advantage of that company's share price slide from pound stg. 36 in early June to pound stg. 22 on the day the offer was launched (it soon shot back upwards, of course).

This hints at what might be an emerging strategy for investors. No, not to launch opportunistic takeovers, but to troll through the explorers looking for those with an emerging resource where that project in terms of share price is woefully undervalued by the market.

Take Uramet Minerals (URM). Back in May the company announced it had phosphate indications on its uranium ground in the super-hot phosphate area known as the Georgina Basin which straddles the Queensland-Northern Territory border. The shares, which had closed at 8.9c the previous day, took off, hitting 33c before easing before the close to 26c.

But last week the stock was unmoved, staying at the 10.5c level it had the previous day, even though Uramet had some big news. It reported grades of 39.4 per cent phosphate and that mineralisation was widespread. MD Bill Hewitt said many of the sample grades were well above the level required for direct shipping phosphate.

http://www.theaustralian.news.com.au/story/0,25197,24233596-18261,00.html