DMM - DMC Mining

[ta2693]

I think tomorrow will bounce back fiercely. the 33mt DSO is there. I can not see any reason what should I worry?

 

[Sean K]

A slight correction was a little obvious at these levels.

I anticipate resistance around the congestion and all time high between .98 and 1.08. So, that area would be my target, for now. On the downside around .80 is probably support. You would think it should correct naturally at some point, and I anticipate this $1.00 ish area.

Mate would really aprreciate if you could keep us all informed about this developing up formation etc etc

A couple of chart/tech questions
Whats the target?
How should it play out? ie how should the handle form etc

Are these very high probability formations?

Thanks

Hey LN, That cup might eventuate, but anything could happen really from here.

It's certainly a cup, although a little V shaped, but no handle yet. Maybe it could trade sideways for us and form one. If that occurs you possibly get a hypothetical target of around $1.60 from the break up of the hypothetical tips of the cup around $1.00...LOL

Still undervalued by all accounts, just going to do the zig zag thing like every other stock on the ASX!

 

[juw177]

A couple of chart/tech questions

The last few days have seen an increase in volume which suggests a blow off, which was confirmed by today price action.

That said, I am quite bullish about today's action. Today's volume was high but not extremely high. The main thing here is that the period with the most activity was towards the end of the day when there was a strong bounce off the 50% retracement level of the triangle formation ($0.60 - $1.10). This was also when I bought in

If this level holds, we will be looking at a retest of the highs.

 

[d_crome]

I'm amazed just how much this has dropped to all that I can attribute to a delay in a market announcement - just goes to show how day traders really do read these forums!!

With SDL hitting highs, you'd figure that DMM would have continued on an upward trend regardless of the scoping study.

There truly are some impatient folk out there!

 

[YOUNG_TRADER]

A few people have pm'd me asking ym thoughts on DMM, so to save time instead of replying individually I am just going to reply via the thread (hope thats ok guys)


I think D Chrome has hit this one on the head, its impatience, pure impatience

I highly doubt its anything else

Go throught the thread and read the comparisons I have made to SDL, then look at the mkt cap differences and ask yourself is this right? or is it in fact "mis-priced"

 

[Sean K]

I think D Chrome has hit this one on the head, its impatience, pure impatience

I would like to add pure market psychology. Nothing goes straight up to a target fair value price!! Fear and greed rule in the market. Stocks ALWAYS over and under shoot true value. Accept it, and take advantage of it.

 

[jbowman101]

my two cents….

fundamentally I believe this stock is undervalued. however, given current market conditions and the delayed release of the scoping study this turn of events was highly probable.

last week there was a significant amount of speculation on the release of DMM’s scoping study, which saw the SP rally around thirty odd percent. e.g. late Friday arvo the SP flew on people trying to buy up what they could anticipating the release of the scoping study this week.

Currently demand has thinned and supply increased due to people losing faith/panicking and selling out. On top of this all the T3 traders who took positions last week in anticipation of the scoping study being announced have fled, causing a serious fall in SP.

During the next week or so, up until around the time the scoping study should be released I don't think the SP will move much from around the .78 - .88 region.

I still hold my position in this company and I believe the next 3 to 4 months is going to be some happy times.

 

[d_crome]

I would like to add pure market psychology. Nothing goes straight up to a target fair value price!! Fear and greed rule in the market. Stocks ALWAYS over and under shoot true value. Accept it, and take advantage of it.

Kennas - always agree with that sentiment, buy the rumor sell the fact. However in this case the SP of DMM rose rapidly in anticipation of an announcement - which is understandable (yet sad as the value of DMM as YT indicates is much higher than the SP is indicative of) - yet as no announcement has surfaced, the sp has sunk as the impatient left.

The problem there is my level of rationality would imply that why would somebody take a 10-15% LOSS when all they need to do is wait a week or two. I guess I can't fathom that level of irrationality.

Obviously when the announcement is due, then the standard trade in and out would occur; as Kenna's acutely stated - it's all about the $

 

[Sean K]

Kennas - always agree with that sentiment, buy the rumor sell the fact. However in this case the SP of DMM rose rapidly in anticipation of an announcement - which is understandable (yet sad as the value of DMM as YT indicates is much higher than the SP is indicative of) - yet as no announcement has surfaced, the sp has sunk as the impatient left.

The problem there is my level of rationality would imply that why would somebody take a 10-15% LOSS when all they need to do is wait a week or two. I guess I can't fathom that level of irrationality.

Obviously when the announcement is due, then the standard trade in and out would occur; as Kenna's acutely stated - it's all about the $

d-c, I know no greater source of fear and lust, than the possession of money! It somehow drives us to do the most incredibly courageous and stupid things that it amazes me. It's like it's the quality of your personality in the western materialistc world, or something.... Really troubling actually, but almost the sum of the animal species.

Unless the funnies hanven't changed, we are just going through the normal cycle. Enjoy it.

 

[Largesse]

"The problem there is my level of rationality would imply that why would somebody take a 10-15% LOSS when all they need to do is wait a week or two."

Alot of people purchase stock on borrowed money. i know for fact Commsec allows me to purchase stock and not have to settle until 3 days later, better known as T+3 trading. I'm sure many broking houses offer similar sort of deals.

Thus,
People expected an ANN around end of May 2008, purchased stock on T+3 in hope of making gains on borrowed money, ANN didn't come, decision time (sell or settle), if dont have funds to settle you have to sell.

And thus we have our retail exodus on late ANN. If you study the intra-day trading its pretty obvious. Lots of small sells

 

[quarky]

d-c, I know no greater source of fear and lust, than the possession of money!

the possession of beautiful women.
(presuming you're all male here) :

basically it comes down to human desire and how strong it is.
the desire to own something, and the desire of someone else to own what you own, from the feelings of inadequacy (which is what everyone goes through)

 

[jbowman101]

i love this forum....

look at dmm now....


demand has ramped up and somehow we've turned around a 4% loss to a 4% gain in the day.

investor's are highly irrational sometimes.

i'm looking foward to 'zig-zag' SP fluctuaitons in the near future

 

[Sean K]

the possession of beautiful women.
(presuming you're all male here) :

No, you need money to possess a beautiful women quarky. Or be able to play music!

Why would Prospector's avatar be a beautiful women if otherwise?

 

[YOUNG_TRADER]

the possession of beautiful women.
(presuming you're all male here) :

basically it comes down to human desire and how strong it is.
the desire to own something, and the desire of someone else to own what you own, from the feelings of inadequacy (which is what everyone goes through)

I will give a big YES to that,

I could care less about money, but women hooo ahhhhh!!! cars are but a very distant 2nd place and I do love my cars,

 

[Sean K]

I will give a big YES to that,

I could care less about money, but women hooo ahhhhh!!! cars are but a very distant 2nd place and I do love my cars,

Hmmmm, perhaps there's a calculated decision to be made about what a women wants in this day and age. Do they want a man of means, a man of performance, a man of control, a man of humour, a man who 'cares', a man of DMM shares, or what??

LN, It's up for discussion about the women v cars v money issue!!

In this day and age, how we make the chick feel good, is terribly confusing.

 

[Romeo75]

Treat 'em mean and keep 'em keen. Just kidding, honestly. Every woman is different. Some want money, others want performance, and there are those who crave emotions & feelings (urghh!!!). How is a guy supposed to figure them out? It's a lottery I tell you.

 

[senorita]

a man of DMM shares, or what??

In this day and age, how we make the chick feel good, is terribly confusing.

hahaha a man of DMM shares! lol maybe if DMM reaches RIO proportions then YES!

Being a woman I'm taking offence to much of the discussion taking place here. But Kennas take comfort in the fact that some men are equally confusing.

 

[Go Nuke]

Guys, that song hit the nail on the head....

"Girls don't like boys, girls like cars and moonnneyyy"

lol.
YT, Kennas is far better at price predictions from charting than I am (Even though I'm sure he might disagree with that statement )

But i'll do some more research on the cup and handle thing for u if i have time this evening.

 

[ans25]

Getting a bit of topic, or is this to sort of drown the sorrows out...
I still think this stock can reach 130-140c by the end of this month simply because these days we are getting quite a margin between the lows and highs, I think at some stage today it hit 91.5c and then went back down to 85c. Last week we hit 110 as well, I think we may see ppl start to jump on the bandwagon before the announcement as well, I read somewhere it was still abt 2 weeks away.

Anyways Im still holding my stash on this, unfortuntely the world is full of impatient ppl, you cant blame them.... but the thing that really interests me is the cup and handle formation it is taking.

 

[YOUNG_TRADER]

tick tock tick tock

C'mon DMM wheres the scoping study?

I can see a few on the registry getting impatient

tick tock tick tock :

p.s. hows the "Cup n Handle" coming along gents?