DML 0.00% 1.9¢ discovery metals limited

insto strategy?

  1. 496 Posts.
    Thought twice about posting this, but shocked at SP and wanted to share my opinion on the situation. (my opinion)

    First, to remind, I've followed DML for years. I've read the half yearly accounts, and January commissioning update... and I know my accounts. Beside some teething issues, everything looks very very positive IMO. As I have posted before, commissioning always has it's issues, it just takes time to get settled. Major positive, we're up and away! Things are only going to get BETTER!

    So okay, my theory is this is a drive down. Instos know it's a great investment and want a slice/bigger slice before things really get going. But the PROBLEM, they can't increase their holding on market because it will send the SP crazy sky high.

    First, they have to drive it down, cause fear, cause confusion, reduce market cap, then the directors get a phone call from the banks on their borrowings: "We're calling your margin".
    Directors response: "this is just the usual BS, don't stress guys".
    Banks: "don't care, raise some cash to restore the margin"

    What happens? Directors forced to do a small raising. Guess who? Insto's get a bargain based and sizeable allocation. You get the drift....

    I doubled up earlier today. Easy decision for me.

    Then again, I might be all wrong. Just IMO
 
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