Katanga Mining Ltd Ord KATFF

RE:What gives??

[springinhetveld]

I think the bottom, or at least strong support, is at $0.72. But seems there are some forces at play that want to push this even lower.

The potential of this stock is enormous but so is the risk. Main risk items I see as that firstly the are in the DRC, secondly they have this huge debt, thirdly Glencore (or some related party) could just take the remaining ~15% for whatever price they want (manipulate). With Glencore owning 85% there is not much we have to say about the company.

So really a big question if Glencore would let KAT reach its full potential of lets say $10. When will Glen say "enough is enough" the SHs have all gotten a good profit and out they go.... Would that be at $2, $3,..... 

So the risk versus reward is may be much smaller then one would intially think. Guess there are actually very few institutional investors in KAT as for most the 85% ownership would be an absolute NO-NO for investing. I am considering getting some if it drops down to 70c as a 3x bagger until $2 is basically a certainty when the Q3 figures turn out to be what I expect them to be....

But before investing in KAT if first want to see "how low can she go"