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The Lyceum - searching for eudaimonia


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I'm finding it harder and harder to not jump in to some of these seriously oversold juniors with cash and known assets close to the majors.

BRM is a classic.

1.5b tns of IO with an MC of $70m and cash in the bank of $110m..


Might have to take a long term punt there.

Surely a takeover on the cards. Just at it's cash backing is a 40% return.

Long term support at .50 ish holding. For now.
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  1. kennas's Avatar
    Dipped my toe in the water and bought 20K@.52.

    Will add or sell as the market dictates.

    Might be a LONG wait for a return, but on the facts available looks stupidly oversold.

    Market seems to be factoring in total earth implosion....
  2. Gurgler's Avatar
    Yes, I've been keeping a watchful eye on it also.

    But as you say with the current market movement, when is the time to act?
  3. kennas's Avatar
    I still think 3400 ish on the XAO is a possibility, and any buying between here and there something that could survive might be a good long term buy. I'm not sure how this can fail with $110m in the bank. Even if they need to just halt progress and wait for the dust to settle. If it takes 2 years so be it, but with the cash backing far outweighing the MC I just can't see much more downside. Unless there's something we don't know....

    Obviously a risk, but that's life!

    Ready to sell probably if it makes the low 40s and will re-evaluate.
  4. Garpal Gumnut's Avatar
    Mate its in a long term downtrend and a descending triangle. If you are correct stick with it. If it nudges below 0.4550 I would be out if I were you.

  5. kennas's Avatar
    Yep, I agree.

    Not going to hold if it starts to fail the 50 ish support.

    I'm going against my normal trading plan here as I normally only jump into anything breaking up, but this is an exception to me.

    There must be a reason for the arb on the intrinsic value and mc, but I can't really see whay it should be so far undervalued, and right now, I think the downside is more limited.

    Happy to be burnt a few bucks for the potential reward on this 'investment'.

    Let's see.

    Actually thinking about adding some more Mon am pending the open.

  6. kennas's Avatar
    Well, this was my first buy of anything for some time, other than day trading some large caps, the index and gold and I think it will be short lived.

    While I think we're nearing a bottom, just where the fvck is it? I was think 3400, but the fundamental news just keeps getting worse.

    Might be best to get back behind the couch I feel and stick to short term ....

    At least for a few more days...
  7. kennas's Avatar
    I'm back behind the couch....

  8. Naked shorts's Avatar
    i think its down because everyone is getting out of risky small cap stocks to fund their failing large caps
  9. basilio's Avatar
    Can't believe it can you? Seems absolutely rock solid money in the bank share - and its still falling. I think BRM needs to look as if they are doing something - even if it is only looking for partners, doubling their cash on roulette !!! whatever.

    I wish i had taken the small profit I had when I bought at 52 originally.
  10. kennas's Avatar
    I'm back into BRM at 51.5 and waiting to buy more or sell accordingly....

  11. kennas's Avatar
    Up around 90c now but I haven't added any more on the way which was a mistake. The large candle towards the end of Dec was the signal. Oh well..


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