Agreed. I didn't think the report warranted such a severe market reaction. Caught me off guard, but like you say it should crawl its way back. Just a matter of how long it might take. Currently the biggest loss on my books by a long shot.
These little explorers tend to sell off after assay results unless they really exceed expectations. I don't know whether AUZ intends to develop the project, sell it to another company or try for a joint venture with a bigger company to develop the project, but there's a long turnaround from solid assays until gold is being poured and profit is being made so there's little reason for investors to hang around until their project goes further. Buy the rumour and sell the fact. I know guys who deliberately target these small explorers whilst the company is waiting for assay results to come in and the price is getting a pumping and sell out a few days before results are due not caring if the results are good or bad.
Interesting theory Caput. They had made solid gains based on previous good results and more expected good results. There was also talk of share dilution to merge with another company as a JV. I guess all that news around the same time may have spooked the day trader types who had alread made their 150-200% and didnt see any point sticking with it. Oh well, still a lot to learn in this game. Wha5s your view on the BGS pullback. Should I sell outbfor a profit and buy back in lower at a later date, presuming it comes back in lower at a later date? Yesterday may have been that opportunity...?
I'm not familiar enough with BGS to give an opinion. Looks like they are capital raising to conduct further drilling in May for their lithium project. It's also had a 50% rise over the past few days so it could also be profit taking. If you're confident that the company will deliver on its potential and you're not in a hurry then stick with it. Personally I don't have any exposure to lithium miners or explorers for two reasons and it's not because I don't see the potential in lithium. Firstly I'm not confident there's enough demand for the amount of supply that's been coming online lately and secondly I believe there will be a general downturn in the global economy over the next few years which will pull back the amount of investment in the sector.
Agree Caput, these little speccies are a minefield, get in and get out for a quick profit .Look at BBX, LSR and now AUZ, all talked up, sounded so good then bang dropped like a stone, sell before the fact, works most times.BGS pull back expected but a lot of people waiting in the wings to buy....once the .062c shares are released SHOULD be the best time to buy but any decent announcement and there goes your chance to get in cheapish.IMO it could be the buy of the decade and entry price wont matter too much.
