Sunday, 19 January 2014

DocsLaymanChatter XIX

This weeks Layman chat outlines the value of momentum and swing, the first lesson many private investors learn is wherever the masses congregate usually has gains adding to the register or soon to be big rises.

Sentiment, Momentum and popularity is the tool of the herd investor. We can never discount their value on aim however I urge private investors to take a more rounded outlook at their investment/trade career. In life we are all taught the universal notion of '' bad habits die hard ''

This leads me onto the solid foundations #dlc attempts to harness with P.i's. The theory is to look at a company from all angles head on and from an obtuse angle if needed.

Liabilities (debt/loan)
Tangible vale (proven)
Intangible value (yet to be proven)
Revenue stream (cash in)
Remuneration (bod payments)
Cash costs (Price per unit against market/commodity sale value)
Outflow (Cash going out)
Margin (whether profitable or not)
Gross/net (margin)
Significant holders (Skin in the game)

In order to stay ahead of the game and the interest creation that comes with mass moves on companies you have to already have quantified '' Is there a genuine upside being realised or a pump on a company '' this will help guide you through the forthcoming moves.

Below we look at a handful of companies that appear on/off investor radars.

Sirius Petroleum: Sirius are a company which has proceeded on its journey of sideways movement whilst a large share exchange has been taking place. I hesant to add that I actually think at 3p the value of the company is priced cheaply should the company actually put into practise the high value propositions outlined over the last few years.

Sula Iron: Sula I tipped at 1.8p via the which has turned out to be a cracker, today I have suggested taking some off the table in a more formal manner. Bulletin boards have misquoted me on sula suggesting I'm short of sula or bearish and this is not the case. I am simply following the passage of my own experience and advising investors take some of the 282% gain realised in a month.

Strategic Minerals: The company lit up on rising registers as well as P.i radars Friday with a high volume interest from buyers. This is a classic signal outlined in today's chatter and one worth adding to the buy/watch list as the SP seems to be down in the 12 month chart and with a bunch of life now showing on sonar.

MTV Popular Pump: Still manages to keep a few well known bullshitters interested as they trade out the weak (new) P.I's who are bowled over by the romance of millions of shares for very little money with the notion they will one day make it rich, - '' It won't and you won't '' Sell for crying out loud.

Mwana: I flagged Mwa on the twitter feed last week, the SP took off from 1.45p-2.55p with an aggressive pullback to scratch however the interesting fact comes by way of technicals as the rise and the fall off the 200dsma is an early bull flag signal. Early next week will dictate if the pullback is a fake beartrap to sucker people in or a bull trap to sucker buyers in. '' Time will tell ''

African Potash: I won't beat the drum to hard here but its one that has been mentioned a few times now although still has not realised its total potential. currently the shares are trading cheaply so I wouldn't be surprised to see it shoot up another 50-75%

Leni Oil&Gas: This week Leni announced the Company's application for a Certificate of Environmental Compliance ("CEC") for the planned drilling campaign of 30 new wells at the Goudron Field has now been approved.

With a heavy focus on the small/microcap resource sector this week! Next week we will look at sturdy offerings of diversity.

All the best


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(These are but opinions derived from my own experiences and thoughts and do not adopted as statement of fact)

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