RE:RE:7.5%... Well, not exactly – you can be partly in, and partly out – or in with reservations.
In the longer term, I think Benduck’s appeal to historical precedent is persuasive. Eventually, things will get sorted out, and Dynacor’s potential will be realized.
In the shorter term, I think it is necessary to look at the immediate context. What is different this time is what we have learned about the bureaucracy in Peru – it is monumentally inefficient. A simple construction permit currently takes between 300 and 500 days to be issued – and there is no guarantee that it may not take longer. In view of that reality, there is some doubt as to how long the “confusion” about the new requirements for ensuring the legality of miners will last. If it is resolved in a couple of weeks, that’s fine.
If resolution should take months, then it looks as though the mill will be shut down. Any “good” news – such as the issuing of the permit or excellent drill results – becomes irrelevant in the context of stasis and significant uncertainty. The stock is unlikely to reflect excessive exuberance.
A recent release from the company suggested that they were considering diversification to other jurisdictions; this would appear to be a prudent move – whenever it becomes feasible.
Personally, I have sold my holdings in a tax-free account. Since my cost is low, and I still have a considerable number of shares, it would trigger a significant capital gain to sell in a taxable account.
So, I’m in for the long haul, but prudently out in the short term.
As Benduck points out, each investor will respond according to his unique perceptions and circumstances.