@JFRO007 I am not much of a day-trader. Bought it early on TSXV at 0.09 CAD, waited quite long in deep red when it was lingering at 0,06 with absolutely no news, then "happily" sold 20% at 0.15 and another 20% at 0.18...yeah . I have my full position back now, as I am buying the dips on the way up, but should have been more patient in retrospect The project has no fundamental weaknesses as far as I know, it is well finaced, well prepared, derisked everywhere you look and it has all the support it needs. Considering the management performance and everyting, I see this scenario as a "small-cap-potential with a large-cap-like risk reduction".
Since I live in the Czech Republic, I know (unlike you Aussies and Kiwis ) we are a pretty civilized and industrialized country. There was a large 2-page article about EMN in the largest Czech business newspaper recently. The reactions were very positive. There are nearly no environmental pressures as the company did an extensive info campaign for locals and municipalities. The Czech Republic is small, but it has 2 nuclear powerplants, still runs some coal plants and produces around 1,5 million (!) cars per year (Volkwagen concern,Hyundai and few other companies). The EV revolution is therefore closely monitored and since we desperately need environmentally friendly projects to comply with EU demands, EMN can count on a full support due to this reason alone...
As for news and the effect on SP: these guys are not theatrical about their project and they do ANNs only when they have something to say. The first upcoming milestone is the demo-plant that should be ready by late summer. They can announce the progress stepwise, or (more probably IMO) only after it is complete. The pullback we see now is fuelled exactly by that assumption - that they will remain silent till the plant is ready - so traders pursue other chances in the mean time. However, if EMN chooses to release "any" progress or positive news, we are back to 0.8-0.9 AUD range in an instant... Many investors understand this, as well as the reduced risk for DP completion, so they keep the stock and will (or do already) accumulate well in advance. Remember, they have a 100% measured (!) resource - this is not a gold-mining junior trying luck with maiden drilling...
Taking into account all above and looking at the graph, I think the 0.5 is a rock-bottom as there are neither fundamental, nor technical reasons to sell even below 0.6 (at least without some bad news). If it breaks 0.6 AUD again, it is IMO going to bounce back quite quickly and remain around 0.6 until some news is released.
That is all IMO. As always - DYOR and GL! (and sorry for my English).
EMN Price at posting:
64.0¢ Sentiment: Buy Disclosure: Held
. I have my full position back now, as I am buying the dips on the way up, but should have been more patient in retrospect
The project has no fundamental weaknesses as far as I know, it is well finaced, well prepared, derisked everywhere you look and it has all the support it needs. Considering the management performance and everyting, I see this scenario as a "small-cap-potential with a large-cap-like risk reduction".
