DML - Discovery Metals

[skc]

Got lucky last week picking up a small parcel last week at below offer price and offloaded them on Monday. Now just waiting for skc and others to dump their new shares to get in again (hopefully near the offer price)

Lol... not sure I am going to move the market that much with my holding size. But I will join you at the bid if it comes back toward $1.

 

[teabagger]

I think that after the dust settles and the extra rights issue shares are in the market that there is plenty of up side for DML.
They are sitting on plenty of resource, and things should get moving as they head toward and get into production.

A good one to collect on dips and keep in the cupboard

 

[Kevtas]

I agree - I am starting to get quite a collection of this. If you look at the world consumption of copper now and the future predictions, this is one area that feel confident to invest in.

I am looking for more quality copper stocks to invest in. DML is at a great stage though and it is hard to find stocks in companies with such great potential and at such a good point in there development.

 

[pigeondog]

You may be acquiring but in the last week or so, the directors have been dropping this thing like a stone. Chairman Gordon Galt sold 500,000 shares, John Shaw sold 100,000 and MD Brad Sampson sold 1,500,000 shares - all of his shares that were available to sell.

If they thought it was going up then they wouldn't be dumping stock like this.

 

[Miner]

You may be acquiring but in the last week or so, the directors have been dropping this thing like a stone. Chairman Gordon Galt sold 500,000 shares, John Shaw sold 100,000 and MD Brad Sampson sold 1,500,000 shares - all of his shares that were available to sell.

If they thought it was going up then they wouldn't be dumping stock like this.

pigeondog

Looks like it was your first post. Congratulations and welcome to this forum
What you discovered is very daunting for DML holders. I just sold my holding to buy the rights. Definitely the sell news missed my attention.

funny enough a reputed newsletter has been recommending DML like any thing. whom can you trust even when you paid good amount of money to get an unbiased report

 

[skc]

You may be acquiring but in the last week or so, the directors have been dropping this thing like a stone. Chairman Gordon Galt sold 500,000 shares, John Shaw sold 100,000 and MD Brad Sampson sold 1,500,000 shares - all of his shares that were available to sell.

If they thought it was going up then they wouldn't be dumping stock like this.

To clarify Brad Sampson got 1.5m shares by exercising his options at 40c and then promptly sold them on the market. So a cool $1.65m in the bank.

 

[pigeondog]

To clarify Brad Sampson got 1.5m shares by exercising his options at 40c and then promptly sold them on the market. So a cool $1.65m in the bank.

He exercised 1,000,000 options at 44c each and had 500,000 shares vest under the "DML Employee & Director Share Plan" - a share based payment from earlier times. But yes, he made plenty and he appears to have taken the cash and run.

My concern is this: if the directors thought the share price had lots more upside then they would find a way to avoid selling in such numbers. I know they'll come back with excuses about tax bills, school fees and divorces to pay for but these guys have all been in the industry for 25 years plus and should have some cash behind them. Not to mention that Brad Sampson's cash salary was $401,604 in 2010 [2010 annual report].

 

[pigeondog]

Shares are now trading about 12 cents lower than where the directors sold even though the copper price has been up slightly.

Thanks guys, it's good to know we have the board looking after our interests.

 

[pigeondog]

But wait there's more! Gordon Galt, Chairman sold another 185,000 and Jeremy Read sold 250,000 reported to the ASX on 10 Dec 2010.

So here's the tally for the first week of December:
Brad Sampson - 1,500,000
Gordon Galt - 685,000
Jeremy Read - 250,000
John Shaw - 100,000
Total - 2,535,000

That's a lot. I am certainly wondering if there is something the directors know that we don't.

 

[matthewdean]

I recently bought into this stock thinking it would be a nice addition to my portfolio for the long-term but reading this sort of information has got me a tad worried about my investment. Clearly the directors have access to information that everyone else doesn't.

I think I'll just cut my losses on this one.

 

[pigeondog]

The big test will be the extent to which the directors have participated in the non-renounceable rights issue.

The thing that annoys me the most about all of this is that they were selling after we had committed our money. If I had known that they were going to dump stock I wouldn't have participated.

 

[pigeondog]

Now Morrice Cordiner has got in on the act and sold all 250,000 vested shares - Morrice's entire holding that was available for sale.

 

[glenn_r]

Now Morrice Cordiner has got in on the act and sold all 250,000 vested shares - Morrice's entire holding that was available for sale.

Acquired 250,000 shares under employee/director share plan and disposed of 250,000, result status quo and $317,500 richer.

The sky is not falling chicken(pigeon) little.

 

[Good Vibes]

Some crazy buying is happening today at huge volume with no apparent news, (seems like a speeding ticket to follow soon) anyone knows what's happening here?

Good call SilverRanger. The huge volume did not go unnoticed by the ASX either - DML received a price query:

http://www.discoverymetals.com.au/IRM/Company/ShowPage.aspx?CPID=1428&EID=98387354&PageName=Response%20to%20PriceQuery

ASX wanted to an explanation (and so do I) for the increased activity that was evident from 26 Nov ($1.19) to 29 Nov ($1.36).

DML is a mass of contradictions

 

[pigeondog]

Acquired 250,000 shares under employee/director share plan and disposed of 250,000, result status quo and $317,500 richer.

The sky is not falling chicken(pigeon) little.

Glenn, This is definitely not status quo. The directors have not actually acquired them by handing over cash. There is a share scheme for directors where they have previously been granted share based payments which vest over time. Most (all?) of the directors have just had a batch of shares vest which means they have technically "acquired" the shares from the trustee of the scheme and they can now sell them if they wish.

The directors have two choices: they can hold on to the shares because they believe in what they can add to the company as directors, and the future capital gains as the company's copper project reaches fruition; or they can ditch the lot because they think all of the upside is priced in.

It is telling that the directors have sold nearly 3 million shares between them in the first two weeks of December. Many directors sold all of the shares that were acquired through the director share scheme which was all of the shares they own in the company. This is not a vote of confidence from the board.

 

[countryboy]

yep im out of this on the back of most of the directors selling. Africa is still hard place to do mining and the fact that bhp cast their eye over it and opted out suggests their is no company making resource in that neck of the woods

hope Im wrong for those who choose to stay long term

 

[vnbm]

I'm also thinking about ditching them today. Directors haven't given me any confidence at all. Although the they have been going up the last few days. I have a feeling in the back of my mind I'll regret it.

But better to be safe than sorry i suppose.

 

[mr. jeff]

Have been watching all this with interest and must add a chart for some colour in this part of the world.


First, I would say that they have just today made a new high.
Second, volume is not overly large.
Third, the MACD has just crossed to positive, with consecutively smaller negative histogram and building larger positive.
IF it wasn't Christmas, I would say this all adds up to a new move.

This directors selling does worry you a bit. What do they know about their company, maybe they just need some Christmas money!
Remember that they can't ever sell or buy when things are about to happen, it is very hard to read too much into director transactions. They would also all be quite aware of this effect and may have timed it in this way for a particular reason.

I have no idea what that might be, but lets discuss this again in Feb and see what the deal was...

 

[RaymondJ]

pigeondog

Looks like it was your first post. Congratulations and welcome to this forum
What you discovered is very daunting for DML holders. I just sold my holding to buy the rights. Definitely the sell news missed my attention.

funny enough a reputed newsletter has been recommending DML like any thing. whom can you trust even when you paid good amount of money to get an unbiased report

Hey I read a supposedly reputable newsletter about DML. Have you seen the presentation about DML?
Its very much like a hard sell, and somebody from the newsletter went over to S.A. to have a look, I wonder who paid for the trip? I thought this stock might have been on the money but after that newsletter and the directors profiting off the stock Im not so sure, I might just watch for a while.

 

[Fishbones]

newslaeter is "diggers and drillers" by Dr Alex Cowie from Daily Reckoning Australia.

They go on and on for eg. "If you own just one Aussie resource stock this decade, make it THIS one." and "389% in two years is my conservative estimate... "
the audio goes for about 7 min and he "teases" by giving some facts about the company and their developoing Kalahari tenament in Botswana.
As I can see we all know this, but they want $$ to tell us. My feeling is that majority of these so called experts are out there to exite and take guaranteed $$ from subscribers who need to take real risk.....He also claims that he went to Botswana to see it for himself (yeah right!...even has the picture to prove it )and that Soros bought 8% blah blah blah.....

Anyway I hope he is right as I am holding few shares in this one (DML) but as most of you , i get bad feelings when directors sell...

Cheers