ORO: No falling knife but a promising 10 baggers?

Discussion in 'Shares & Funds' started by wdongli, 16th Apr, 2011.

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  1. wdongli

    wdongli Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    1,128
    Location:
    Perth
    To get 10 baggers from the dirty-cheap fishes, you need to find the explosive causes which start to play its part in the price. Don't expect everything would support your ideas or assertions. You would find a lot of noises with some very weak signals if you try hard enough. The key to succeed is to use critical thinking and strategic reasoning.

    1. What's your position? What if it shoots up and what if it would not?

    2. Is the profit big enough to your current financial situation? Such as you have $100 only and a $1000 profit is a very good one and you have to lock! Otherwise you should hold.

    3. The signal is telling a explosive points if something high likely could happen, isn't it?

    4. What's the market sentiment to the events you expect? Great or indifferent?

    ORO is a dirty-cheap fish which has been beaten by the market terribly and didn't join the V-Shape recovery. It has hurt all who want to ride gold boom by holding it. It could be survival shows its residual value and should be much higher than the current price. It needs the triggering events to show its residual value to the market.

    It turns to rare earth. Could it succeed? Is it riding the hope of rare earth safely? It farms out to DMN with 25% interests for a free run in the rare earth rush of the market. It has no risk to close the door but open the opportunities big enough to itself. My principals in it should be very safe but could also very promising. What could I expect from a dirty-cheap fish? No risk to lose the principal but great chances for 10baggers!

    Could I get all of my dirty-cheap fishes as ORO in future? You could see more my thoughts and studies for value and margin of safety in wdongli - Member Blogs and welcome leave some gems over there!
     
  2. wdongli

    wdongli Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    1,128
    Location:
    Perth
    Rare earth to DMN and ORO: Opportunities or Traps?

    A post about the risk and reward that the rare earth to DMN in HC from sircorp, is worthwhile to read to open the mind for any dirty-cheap player who would like to get 10 baggers with the fragile leverage of the dirty-cheap fishes. A little changes for me to learn bent it for my habits and add some of my concerns. Thanks him in advance.

    ***
    Time that explosive powders accumulated

    Under incubation any project starts with level 5 risk(Highest Risk):

    1>. survey,

    2>. modelling,

    3>. permitting,

    4>. drilling,

    5>. Grades and JORC starts flowing, risk level keeps moving down level by level.

    Risk reducing and chance increasing for reward


    How to De-Risk the investment to get decent rewards? Is De-rsiking take place and follow it through? To DMN, sircorp thought:

    Get the ideas: Survey


    Mt Barrett Project was approved by the Department of Mines and Petroleum (Western Australia) on 31st March.

    Risk Reduced by one level.

    Confirm the ideas level 1: find the sign of the explosive powders

    Mt Barrett contains the M12 (Mt Weld Style Rare Earth) "Bulls Eye" Target. M12 is a discrete intrusive and strongly magnetic anomaly approximately 2.5km in diameter with the potential for Rare Earth Elements.

    Risk goes down by at least 1.5 level here

    Confirm the ideas level 2: diversification in case

    Company(DMN) have three projects. Mt Barrett (REE in Western Australia), Moruya (Gold in New South Wales) and Pambula (Gold in New South Wales)

    Again risk goes down by one level again.

    Confirm the ideas level 3: Is great grade of the explosive powders?

    Now only thing left to confirm grades. Once that is done, DMN will hit Level 1 risk(lowest level).

    What after the explosive powders are there?

    After that Finance, Market conditions becomes dominating factor.

    Do you want to ride it as a investment vehicle or wise speculator since you finish you job as bargain hunters for 10 baggers? Do you know all of the process could be suddenly stop and change the course? Do you put the risks for affordability into your deep concern about the future? Anything could make or lose money. Dirty-cheap fishes could shoot you into sky or drop you into the hell, do you know it enough?
     

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