Hi All, I have one more post today mainly to say: I
have a strong inclination that we are in the middle of a re-rate and I would like to demonstrate this with an example of a Re-Rate.
Introduction: To clarify with an example. I would like to draw your attention to the chart on SYR.ASX. The similarities are that SYR and WKT are both graphite plays, however, SYR is a far lower in graphite grade but larger in the size of its resource.
WKT bosts far superior graphite.
Though though these are graphite plays they are someone different type of graphite plays.
I, however, would just like to discuss the TA of the re-rate that happened with SYR and the timeframe it happens in.
SYR had a similar movement right from inception as WKT. It moved sideways, having highs of 15c and lows of 6.5C, at times even reaching highs of 0.310c.
The Re-rate:The ebbs and flows of the SP are due to traders, short term and long term, however, there are key re-rate periods. Such as the one that took place between the
17th of Jan 2012 and the 7th of Feb 2012, where SYR moved from a base of
15.5c to A high of 58.5c. Take note of the significant pullback that happens to 46C in the next week or so. However, by the end of Feb 2012, we have established a base of around 61.5C.
All this happened during their initial project diamond drilling program. Their first major production was only in Nov 2017.
The next significant re-rate in 2012 points come at the start of April and mid-May of the year. Giving the SP a whopping increase to $2.91 with an established long term base of $2.365. SYR went as high as $6.610 closer to its time of production. And only breaking this support in September 2018 (Caused due to the decline in 2018), and now sits at a price of $1.305 which is on its way up again.
Conclusion:Based on this experience, WKT is well ahead of the curb with a depressed SP, low SOI, low MC in comparison to SYR.The issue has been that we have lived through a major stock market depression in 2018, so the timing was just a bit off. However, with the way, things are going now and we are looking at a
production period of 12 - 24 months? Where do you think we will be in the next few months, or in 24 months. Can we achieve half the SP of what SYR is? with a resource of much better quality? I will leave that question for you to decide.
Risk: For me, I won't be selling this one cheap. Make no mistake I am not in love with this stock, I am in it for the gains alone.
I, must warn that my appetite for risk if far greater than even a seasoned investor. Though I do winge allot to my closest friends online.
Determine what you'r apatite for risk is, and
don't get lost with dreams of fast cars and fancy houses, in fact, imagine
what you would be comfortable with loosing and only risk that.
If the money is not in your bank account, the money does not exist. lol I am sure some will be sick of this by now, but if your new to WKT and do not have an avatar please consider one of these... I make them just out of my own interest and have no affiliation with WKT. Just love creating graphics. Would love to see the form lit up with these by the WKT loyal. Thanks again in advance.
(20min delay)