GREY:COLUF - Post by User
Post by
JoeKoolon Nov 28, 2009 12:54pm
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Post# 16532972
Due diligence
Due diligenceI remember a perfect example of an "investor" buying with no knowledge of the play whatsoever. It was back when NOT was taking off and nickel seemed to be the flavour of the month. There was this small cap I had a few shares in called Dumont Nickel, DNI. It was actually a gold play. Anyway, one day, DNI explodes on heavy volume, and with no news. The stock gets halted by the TSX and the company releases a statement they have no idea why the heavy action as there is no news. The SP came back to earth, as fast as it went up. A poster on these BBs had bought during the runup and was under water when the SP dropped like a rock. He starts posting that he just found out that DNI was not a nickel play after all and that the company should be sued for misleading investors because of their name. I laughed so hard when I was reading his rants I almost fell out of my chair.
In the coming frenzy in gold juniors, you'll see companies SP explode just because they have the word 'gold' in their name. It's those "investors" that will make us a lot of money as we sell to them near the top.