Despite the stock price action and the negative talk, DLKM appears to be under the process of accumulation. Somebody is buying.
As investment legend W.D. Gann taught many years ago:
“Accumulation and distribution are exactly opposite. When the insiders want to sell stocks, they make all the noise possible and do everything to attract the attention of the public and create buying power. When stocks decline to low levels and they want to accumulate a large line, they work just as quietly as possible. They use every means to disguise the fact that they are buying stocks, and do everything to discourage the outsiders from buying them.”
**
“[W]hy do you expect the man on the inside, whether he be a banker, pool manager, manipulator, investor or otherwise, to tell you what he is doing when he is trying to make a market to sell out a line or to accumulate a line?
“You may be able to find out why he is doing if you can interpret the tape correctly, because it tells the story of everybody’s buying and selling, and it never lies if you know who to read it right, for neither insiders nor the outsiders can hide or disguise the amount of buying or selling.”
(W.D. Gann, Truth of the Stock Tape, Financial Guarding Publishing Co, 1923, Reprinted Lambert Gann, Publisher, pp. 115-116).
The technical tools of the Accumulation/Distribution Line, On Balance Volume, and Money Flow are used to show underlying buying and selling action. Where there is a strong positive divergence between sinking price and rising flow of money into a stock, the action of the stock is healthy. And as the Stockcharts (Chart School) site points out when such positive divergences has existed for months, attention to that stock is warranted. Such appears to be the case for Douglas Lake Minerals.
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The above suggests that those “in the know” (and they may not even be management) are deliberately keeping the price under control in order to Accumulate. A breakout might not occur immediately, as a rounding bottom could be forming. Nevertheless, the action is very positive for the long term investor.
fwiw
jmho
ICBW
DYODD