After the recent down ramping of Gw it made me think about why...

After the recent down ramping of Gw it made me think about why do people post on one day;

"For promotion purposes, the company could also probably do with a change of name.

The directors on this board look more qualified than any other graphite company on the ASX."

And the next post slanderous accusations???

"You will see that before the raising at 2.5c there was ten (10) director interest notices or change in holding notices. It gives the impression (which may be my false misreading of it anyway) that they were getting set and primed. Give themselves and mates 4 shares for every 5 held, at just 2.5c a share. A classic setup or not? Perhaps I am reading far too much into this, maybe it is all the funds and traders faults."


The market goes up and the market goes down, this is natural, normal and not a negative phenomena. Anyone can mix up events and slander a company when they are pulling back. It is as common as a dog scratching imaginary fleas.

Each of us needs to do our own research and think for ourselves from the existing data.


New2waix posted:

"Just one comment regarding insider buying and selling.

In the past I worked at a global fund manager that placed a lot of store in analysis of insider activity. It is a powerful tool.

However, over many years of analysis and testing we pretty much found it to be 'asymmetric' in importance.

That is, insider buying trends are far more important than insider selling trends for stock price direction. Hence the quote above that says 'some analysts believe a 20:1 ratio is significant'.

Most studies have found that selling occurs for a huge variety of reasons that have no relationship to the insiders view of the company's fortunes - funding education, buying cars, buying houses etc. And yes, maybe a view that the company is not likely to meet its objectives but this in many cases does not even come into it.

The 'insider buying' stats are very significant because there is generally only one reason why they are putting discretionary money in - they are bullish on the company.

This is why it has always proven to be a far greater predictor of stock price movement than insider selling ever has, or likely will.

Again, that's why it takes ratios of 20 or 30:1 before anyone gets particularly interested.

This is in no way is meant to 'debase' the argument put forward in the newsletter for a bearish market. That may well prove right, I don't know. Certainly $52m compares lowly as you say Claudius and the ratio is extreme.

I am just trying to point out that if and when looking at these numbers from time to time, please remember that the buying trend has proven a far greater indicator for stock price behavior than selling, so pay attention to that area more than the selling."


I think normal market behavior is used by people to try and get larger positions and it for the most part does not work because the sensible investors that can calculate value are granite when it comes to the ups and downs, highs and lows of emotion. The market for the most part is irrational which is why we get inefficiencies and chances for real leverage and risk reduction.

So while natural pull backs are portrayed as the sky falling in or worse slander against the management, I would recommend a reconsideration of the past as it is a determining factor in the future.


Facts Are The Enemy Of Folly

• http://www.*.com.au/genera/img/companies/news/thumbs/mrl_corporation_drill_rig_100_53c70d6bdbc53.jpg
  17/07/2014
  MRL Corporation's graphite vein assays 97.8% TGC in Sri Lanka
  
  MRL Corporation's shares are expected to lift at the open after delivering outstanding assays of 97.8% total graphitic carbon from its maiden diamond drill hole in Sri Lanka. A second hole is already underway, with the drilling program now doubled to 1300 metres.
• http://www.*.com.au/genera/img/companies/news/thumbs/mrl_corporation_projects_map_100_53aa08d679673.jpg
  25/06/2014
  MRL Corporation intersects high grade graphite veins in Sri Lanka
  
  The first drill hole at the Bopitiya / Pandeniya priority location in MRL Corporation’s Sri Lanka graphite permits has intersected one high grade graphite vein and a second sub-parallel graphite vein.  This is a very promising result for maiden drilling.
• http://www.*.com.au/genera/img/companies/news/thumbs/mrl_corporation_drill_rig_100.jpg
  10/06/2014
  MRL Corporation poised for key graphite drilling in Sri Lanka
  
  Drilling is due to start on and around 11 June 2014 at MRL Corporation’s Pandeniya graphite project in Sri Lanka to test the vein graphite potential in three locations. The projects could potentially produce 5,000tpa of vein graphite.
• http://www.*.com.au/genera/img/companies/news/thumbs/mrl_corporation_projects_map_100_537ed2a93e675.jpg
  23/05/2014
  MRL Corporation testwork produces 95.4% graphite concentrate
  
  The production of concentrate grading 95.4% total graphitic carbon from remnant graphite samples at its Sri Lankan graphite licence is promising given that it was achieved from the first round of testing using a single stage flotation without any regrind and process optimisation. Diamond drilling will begin soon with drill to mobilise to site on or around 29 May.
• http://www.*.com.au/genera/img/companies/news/thumbs/mrl_corporation_projects_map_100_537bee6d49ae0.jpg
  21/05/2014
  MRL Corporation signs drilling contract, targets Sri Lankan graphite
  
  MRL Corporation is poised to kick off a graphite focused drilling program in Sri Lanka. Results will be highly anticipated as the country is renowned the world over for being the only producer of crystalline vein or lump graphite, which is the highest quality of naturally occurring material.
  

Speculation is risky and full of potential errors.


Kind Regards

PS - DYOR !