RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Report on Tuesdaynyoni wrote: Federovitj, thank you for the apology.
The problem (if it is a problem) with Lucara is that it has been thrust into the position of number one producer of special stones in the world, and will be so for the forseeable future.
As such, it has to adapt to the responsibility that goes with that position and, like DeBeers for much of the last 140 years, has to discover and employ a strategy for maintaining the price of the product.
The key component of that, as DeBeers found out, is secrecy. Concealing the availability of product and eking it out is vital to product price maintenance. I believe that is what we are witnessing at the moment; a necessary throttling of information about AK6 and large stone production. We just have to suck it up and be thankful that the future is secure on that score.
This is not to suggest that I think the current share price sufficiently values Karowe and we should expect a lot of upside there.
From now on however, the excitement and potential for big upward movement passes to new discoveries and/or corporate adventures.
I am particularly interested, for instance, in the activity so far disclosed re AK11 and look forward to an update in the up-coming full year results.
I have been of the same opinion for a long time regarding the secrecy and opaqueness of the industry and have eluded to this before in past posts. This can make owning a stock like Lucara a very frustrating endeavour as the market enjoys full clarity regularly. Do we refer to this as a kind of "blind faith"?
I have a heavily weighted position in LUC (as I'm sure many that post here do as well) and get extremely tempted to buy more when the price goes into reversal. Funny how this stock went from one of the best performers in my portfolio to the flattest in 2017. I feel like a change in direction is imminent....although that is far from technical lol!