LOM - Lucapa Diamond Company

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Are you still holding on to this stock?

I keep holding my long-term position yes; but stopped out of the recent traders.

 

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Are you still holding on to this stock?

Glad I did hold on. Today's p&v spike suggests some good news may be about to break soon.

 

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In spite of the terse reply to ASX speeding ticket ("No, N/A, No" ) it continues to be bought up.
Can't argue with that

 

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In spite of the terse reply to ASX speeding ticket ("No, N/A, No" ) it continues to be bought up.
Can't argue with that

Unsurprisingly, profit takers came in. The resulting pullback should provide an opportunity to top up. Fibonacci suggests levels where to look for support.



For the time being, I hold on to my lt position, but don't add any more just yet.

 

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Has the downtrend finally been broken?



Today's picture of the latest gem could well do the trick.



But what we're really waiting for is an announcement "We found the source pipe." I continue to hold out for that.

 

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Another nice little paperweight found:



The chart suggested some good news even before it was announced.

 

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nice follow-through



Buyers of LOMOA seem confident of even more upside. They're 20c, September 2017 Calls.

 

[Miner]

nice follow-through

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Buyers of LOMOA seem confident of even more upside. They're 20c, September 2017 Calls.

Hi Pixel
How many mega pixels of $ are you aiming for LOM ?
It is going up and up with few new diamonds to come plus forthcoming sale price of last 172 carat diamond they found.
Should have put this as a tip for this month !
Hope you are still holding (me too)

 

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Hi Pixel
How many mega pixels of $ are you aiming for LOM ?
It is going up and up with few new diamonds to come plus forthcoming sale price of last 172 carat diamond they found.
Should have put this as a tip for this month !
Hope you are still holding (me too)

Can't guess the upside, Miner.
If they're going to dig up the roads, as The Australian suggests (check http://www.theaustralian.com.au/business/l...a9b4ebeb6f138ff ) just one or two "Big Macs" could push the sp into Dollar territory.
Mind you, it's a big "IF", which means I won't put a sheep station on it; but I'm keeping a double position on the side and trade some swinging quickies for additional cashflow.
Keep an eye on the oppies. They will often give an indication where the serious punters may expect the mother to be heading.

 

[Miner]

Can't guess the upside, Miner.
If they're going to dig up the roads, as The Australian suggests (check http://www.theaustralian.com.au/business/l...a9b4ebeb6f138ff ) just one or two "Big Macs" could push the sp into Dollar territory.
Mind you, it's a big "IF", which means I won't put a sheep station on it; but I'm keeping a double position on the side and trade some swinging quickies for additional cashflow.
Keep an eye on the oppies. They will often give an indication where the serious punters may expect the mother to be heading.

thanks Pixel.
The link did not work or I did not understand (I am the dumbest) the context as the comment came 'the page is not available go to home page".
Nonetheless, I got a feel that there will be one or more big diamonds, the price will go up and I will be out . That can not go for ever. besides if there are too many big rocks then rarity and high price of big rocks will automatically fall down. You pay mega bucks for rarity.

 

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thanks Pixel.
The link did not work or I did not understand (I am the dumbest) the context as the comment came 'the page is not available go to home page".
Nonetheless, I got a feel that there will be one or more big diamonds, the price will go up and I will be out . That can not go for ever. besides if there are too many big rocks then rarity and high price of big rocks will automatically fall down. You pay mega bucks for rarity.

In a nut shell:
The 404ct high-quality diamond was much bigger than their equipment was designed to capture. The screen allowed for stones of up to about 280ct because initially, nobody thought there was the need to worry about bigger ones. And then, this 404ct bolder slipped through - because it was thumb-shaped and hit the screen at just the right angle.
Since then, they have bought a bigger machine for coarser material, which in the past had been dumped on stockpiles to be used to build the roads. It cost a little over $2M US and will be used to process these stockpiles. The assumption is of course, where one rock slipped through, there may be quite a few more.
Sure, it's a gamble, but a single additional find would pay for the upgrade several times over. And it might lead to the roads being dug up again and the coarse gravel re-processed.

 

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Still no upper limit in sight.

 

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another breakout attempt, and still no news.



After the initial gap-up, I waited for it to close and bought a swinger on pullback.
Will only keep the position if the breakout succeeds. Judging by the OAs, there is a fair chance it will.

 

[Miner]

In a nut shell:
The 404ct high-quality diamond was much bigger than their equipment was designed to capture. The screen allowed for stones of up to about 280ct because initially, nobody thought there was the need to worry about bigger ones. And then, this 404ct bolder slipped through - because it was thumb-shaped and hit the screen at just the right angle.
Since then, they have bought a bigger machine for coarser material, which in the past had been dumped on stockpiles to be used to build the roads. It cost a little over $2M US and will be used to process these stockpiles. The assumption is of course, where one rock slipped through, there may be quite a few more.
Sure, it's a gamble, but a single additional find would pay for the upgrade several times over. And it might lead to the roads being dug up again and the coarse gravel re-processed.

thanks Pixel for the details.
The digging of road reminds me the story I heard in Kalgoorlie. Back days one geologist advised that boulders used to fill the roads were having 40% gold or some thing. Overnight all roads were dug. I only heard this when started living in 1994 there.
My guess is LOM is yet to get a buyer for the 174 carat stone. With a bit hurricane greed also made few investors disintrested. But some break is good in my opinion and that gives consolidation time.
I am expecting by the end of this month we all will have wide grin - that is a guess.
I am holding with lot of temptation unless (very unlikely) the price slumped like Slater Gordon share.
regards

 

[Miner]

another breakout attempt, and still no news.

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After the initial gap-up, I waited for it to close and bought a swinger on pullback.
Will only keep the position if the breakout succeeds. Judging by the OAs, there is a fair chance it will.

Hi Pixel
LOM took a hit today. Were you expecting this type of news ? I was not. Could not understand why market did not like that? Probably they are afraid of sharing the booty with others not an acceptable way to price the share. I thought it is a great synergy instead of short term reaction. It also tells me LOM management is serious for long haul.
What do you reckon ?

 

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Hi Pixel
LOM took a hit today. Were you expecting this type of news ? I was not. Could not understand why market did not like that? Probably they are afraid of sharing the booty with others not an acceptable way to price the share. I thought it is a great synergy instead of short term reaction. It also tells me LOM management is serious for long haul.
What do you reckon ?

Hi Miner,
Initially, I thought along the same lines. But then I got some doubts about the timing: With Lulo in full swing and waiting for some more good news, why can't we focus on one enterprise and do it well, before opening another front and divert efforts and resources?
OK, Ellendale is an area that enjoys a good reputation, and paying $140k for a foot in the door is peanuts. Still, the timing would be unfortunate at this stage.

Maybe I'm wrong and today's market action was no reaction at all, but caused by someone's desire to take profit. Whatever the reason, the chart told me in good time what was about to happen, so I took some good profit myself, reducing my exposure to only a single-size position. Especially after the late drop into a Close at just about the day's Low, I'm expecting more downside and plenty of opportunity to get back in at lower levels. If my interpretation turns out wrong, I'll buy back on the way up. As I never trade sheep stations, the opportunity cost/ loss will be minimal.

 

[Miner]

Hi Miner,
Initially, I thought along the same lines. But then I got some doubts about the timing: With Lulo in full swing and waiting for some more good news, why can't we focus on one enterprise and do it well, before opening another front and divert efforts and resources?
OK, Ellendale is an area that enjoys a good reputation, and paying $140k for a foot in the door is peanuts. Still, the timing would be unfortunate at this stage.

Maybe I'm wrong and today's market action was no reaction at all, but caused by someone's desire to take profit. Whatever the reason, the chart told me in good time what was about to happen, so I took some good profit myself, reducing my exposure to only a single-size position. Especially after the late drop into a Close at just about the day's Low, I'm expecting more downside and plenty of opportunity to get back in at lower levels. If my interpretation turns out wrong, I'll buy back on the way up. As I never trade sheep stations, the opportunity cost/ loss will be minimal.

Thanks Pixel.
I would review my strategy. I dont understand chart ironically so will use my reading and reflected knowledge from others like you who know chart

 

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For now, I'm sitting on the fence. Have tried to gauge the depth of the current drop, and Fibonacci suggests 43 or 46. Whether that's pessimistic or optimistic, I don't know. But I do know that, until I detect a clear buying support, my money is better off in the Bank.

 

[Miner]

For now, I'm sitting on the fence. Have tried to gauge the depth of the current drop, and Fibonacci suggests 43 or 46. Whether that's pessimistic or optimistic, I don't know. But I do know that, until I detect a clear buying support, my money is better off in the Bank.

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Thanks Pixel.
Your chart pattern even I am not a chartist gave me the sense to sell off LMO.
Still handsome profit made so can not be greedy to wait and loss further.
Thanks to ASF for having the opportunity to get value added discussions.
I will also wait for substantial drop and re-enter. Essentially this has potential but not sure for long term.

Cheers

 

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Thanks Pixel.
Your chart pattern even I am not a chartist gave me the sense to sell off LMO.
Still handsome profit made so can not be greedy to wait and loss further.
Thanks to ASF for having the opportunity to get value added discussions.
I will also wait for substantial drop and re-enter. Essentially this has potential but not sure for long term.

Cheers

Agree, Miner
That seemed like a good idea at the time, and I did the same.
At current levels, however, I see support. Over the coming days, we shall see whether that is correct and today's news of the XRT plant commissioning helps with that.



I'm back on the buy side.