J M Keynes famously said regards long run outcomes, that in the long run we are all dead. A concept that seems especially applicable to MRQ shareholders imo. beisha is correct that mineral sands is a tough industry to get market traction in, yet reality is times are pretty good for min sand companies with a reasonable chance of success.
Obviously everyone got smashed in March, but this chart since April shows how well a number of min sand explorer-developers have done in the bull market just hit record highs on Wall St yesterday. SFX has lifted 200% on positive development funding news but 4 others are up between 50-150% also. MRQ is down 20% despite a raft of releases fincluding the MRE, drilling results and assemblage results. Clearly the market is telling us something's fundamentally wrong. A strong rising tide lifts all boats, we see it across the whole junior resource market, but MRQ is siinking.
The daily chart since beginning of Jan sits precariously on the support line from the 24th March market low, which held through early June. Traders and have pre-empted and bought nearly every announcement sinec Jan but then sold it down again. More recently annoucements are not even being bought, just sold into. This change in market reaction suggests holders are looking for liquidity events to sell into and get out, while day-traders having been burnt so often no longer want to run up the news for fear of getting left holding the bag every time.
There are only so many potential good news releases to come, especially if the market has already decided Corridor is a dead loss. Maybe the Lithuane lease being granted is the best chance to bring in new buyers to be sold into. The risk is waiting too long for better news to sell will see lower prices as others take the chance to get out early whiule they can. If the price breaks down below 0.7c every 0.1c on the spread it falls from there is a 20% drop in holding value. At very low prices llike these the spread itself provides a very large profit and traders are encouraged to sell every announcement for a pip or two rather than let it run hilf a cent.
If MRQ can't hold 0.7c and the next couple of releases get sold into instead of bought up, to me that's a signal that larger investors are mannning the life rafts and it's everyone for themselves. I'm sure management uderstand this and will be working the phones furiously to keep holding that support line. Will be interesting to see which way it goes over the short run at least.
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