Glimmer of hope; Funding; Build order. Good Morning People,
We are getting a break in the storm fronts. For the next 12 to 16 hours we are getting sun breaks and broken cloud cover. Very nice after a week to 10 days of flat gray clouds and rain, very depressing.
A glimmer of hope, after the latest PR. We now know that insiders bought over 2 million dollars of the latest PP. Now RJ, that is no big surprise. He has been buying Ucore shares and opions for years. But Pat Ryan buying, that is a glimmer of hope. Pat is issued stock opions as part of his pay. For him to be buying stock and warent units give me a glimmer of hope that the OEMs funding is going to happen and soon. So before thankgiving or Xmas which would have the greatest impact on the stock price?
Funding? A partial funding will move the stock higher. The sixty four thousand dollar question is how high and will it hold at that level or peak and fall back to a support level? Those of you that have follow this board for a while know that Pip and I have very different view of this event. Pip, may be a lot of things but he is not dumb. Stubbornly infuriating but not dumb. He as well as most of us realize that when Ucore comes on line they will be the only company outside of China separating heavy REEs. Ucore has four possible funding sources, the two OEMs, the US and Canadain governments. So the big question will be full or partial funding. If it is partial funding I look for a spike or peak in the stock price and then a fall back to a support level. If Ucore get full funding I look for a spike or peak and hold at the level or a little below. In the past Pip has put the level at 2 to 4 dollars with a fall back to under 2. Myself, I put it between 5 to 10 with a fall back to around 7. Pip, with China adding new restrictions to REEs oversea sales are you sticking to that call?
Build order? As we all know at each stage of development at the commerial plant #1. Ucore will build seven RSX machines or lines. The question is how they will build them. One at a time or all seven at once. One at a time would be slower but if funding is only partial then Ucore would have machines or lines that could do separation while funding or sales could come up with the rest of the money needed to finish. If the funding is full then building all at once would make more sense.
Good luck to all
Dragon
PS Rememeber what Mr Crab said. "It is easy to become rich once you know how the really hard part is staying rich."