I have been looking for a compelling bargain to buy on the market for some time. And I think I have found it in ERM. I took a position today.
ERM really does tick all the boxes - or at least the boxes I want ticked when investing - as follows;
1. The liquidity of the stock is ok. Tick 2. The depth looks good (more buyers than sellers). Tick 3. Their cash position is strong with no chance of a capital raising anytime soon ($12 mil in the bank). Tick 4. The chart looks excellent. A strong base around the low to mid 20's. No gaps and trending up. Big Tick 5. It has been going up on very little if any news. Tick 6. Strong top 20 sahreholders - Top20 own 64%. Very little free float hence the sp could go up nicely on good news. Tick 7. Lare holder or institutional support - well Ivanhoe own a large stake in the company so ERM must be doing something right. Tick 8. Large upside potential for minimal downside risk. Big Tick 9. Working towards something whether it be drilling, a large deal or whatever. Tick
Nothing in life is guaranteed but I think if you have all the above things going for a stock, the chances are that nice gains will be made. The odds will be in our favour.
Given that ERM have already had some solid Copper and Gold results to date, they will have a better than even money chance of continuing these good results in the next couple of months. This gives "early" holders the chance of large gains in a relatively short period of time for little risk.
I'm in!!!!.
Good luck to holders - today has been pretty weak across the board and I think stocks like ERM are holding up very well.
ERM Price at posting:
23.9¢ Sentiment: Buy Disclosure: Held
