I believe it is a combination of a couple of factors:Would welcome your thoughts on the 7% drop today.. any reason for this..
ive done a bit of scouring of the net but cannot find reason for this.
Profit taking from the last 10 days gains perhaps?
THANKS IN ADVANCE
thanks for that,I believe it is a combination of a couple of factors:
1. Profit taking from 10 days of gains
2. I believe some of the run was speculation of news, which hasn't come therefore causing impatience selling
3. Tech guys will tell you there is a gap at 18 cents that needs to be filled
But no matter which way it goes, the fundamentals haven't changed. Coal, iron ore and lithium could all be producing cashflows within 3 or 4 years.
HotCopper users have been discussing that AJM needs to go back and fill the gap at 18c, and it appears that is pretty certain now.ANY REASON FOR THE SHARP DECLINE 1ST THING THIS AM???
Good time to buy in?
OK, So was in at $0.185...HotCopper users have been discussing that AJM needs to go back and fill the gap at 18c, and it appears that is pretty certain now.
The broader market is also down 2% this morning, so the small and micro caps like AJM generally get hammered the worst in these sorts of environments.
I personally will be waiting for it to bounce off 18c before buying another short term trading parcel.
My view is that it will sit in a holding pattern around 20c until we get some of the news we are hoping for. The following is my summary of upcoming price triggers (IMO):
- Forestry permit for Tabalong Coal;
- Positive outcomes from feasibility studies for Mt Webber from AGO;
- Resource upgrades at Mt Webber;
- Resource upgrades at Pilgangoora Lithium;
- News on progress of tender for coal areas in Philippines.
All of these are due in the short term according to previous announcements by the company, and any of them have the ability to push the SP above the current resistance of 23c. If that were to happen, i see 35c as a short term target. But there is potential that we could get more than 1 of these in the next 2 weeks, and that would be massive IMO. I will make a prediction right now that the SP will be above 50c by year end.
Just my opinions. Plz DYOR. Thanks
Disclosure: I hold a parcel of AJM