Club Mulgoa

Tuesday, January 21, 2014

TON

My best strategy for investing remains the ability to pick stocks with great prospect but are dumped by the market continuously after multiple good announcements.

Of course, if that commodity is not wanted by the manufacturers using it, then it is safer to keep a wide berth.  It is no good producing an ore that no one wants.

With TON, graphite is the new black gold, and finding new application in modern technology.  And many contributors have asserted that views; none has condemned it yet.

And with good drilling results, and a neighbour SYR has gone up a few folds, why anyone would want to dump TON stocks is beyond my comprehension.  But I am always willing to oblige.  Today, another set of good news but this time the market is very receptive to resource stock so there is a huge jump in its value.  Don't buy now, ie today; the market memory is very short and I expect it to dip again.

However, it does not always work because sometimes while you are accumulating the stock, suddenly the price of that commodity plunges.  A good example is ABU... but it is rising again.  A colleague asked me whether he should top up more.  I said no.  And the price went down a bit more.  However, it is starting to rise again!

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