where has everyone gone?, page-36

Hi Benchtime

I think the graphic below will help us to understand the lifecycle of a junior explorer.

The speculation period which lasts 1-2 years is the most prospective part of the cycle for your money. As you can see on the graphic NSE is now at the point just before the DISCOVERY and the huge sp accelerations starts. We have only three months to go around those 30c-40c levels. Then it will inevitably go higher, maybe 60c-90c levels even before any discovery is made. After a successful discovery, sp may keep raising as this is a O&G stock, you may consider to get out for taking part in the new ventures.

If you look at ELM on this graphic, discovery has been done, feasibility has started and sp has gone down. That's normal as there is no speculation opportunity after the discovery. The distribution by the accumulators has started and finished AT $2.50 level. (I have been late to sell ELM shares. I sold them out after the distribution finished at $2 level) Now you need to wait for another 4-5 years to see your stock at $4-$5 levels. Btw, there are other bad factors to push the stock price down for those type of stocks in this period; takeover speculators will try to push the sp down to realize a low takeover price. I think ELM is also being affected by this. It is very hard and stressful being in this type situation. If you can wait you will definitly be rewarded (ELM sp will definitly go over $2, and maybe taken over at $3-$4 one day,.. but you need to wait)