Regular readers know why I like the stock a lot. They’ll know I called it in early December as a raging buy when it was in the $1.22 to $1.30 range. They’ll also know this blogger loaded up in the $1.40 to $1.50 range and is sitting on a 250% or so winner right now, even having lightened twice (once around $4, once around $5). Basically there’s some really good reasons why this stock has been so likeable recently 🙂
But here we are at $5 and bits, so why is it time to buy this stock again after such a jump? Answer; newsflow. In the next couple of weeks we can expect the following:
- Dynasty announces the commissioning of its Zaruma gold mine
- Late-to-party analyst run numbers, make noises, say the new mine looks very profitable
- Talk of how Ecuador “seems more stable” or somesuch noise from gurus with more followers than knowledge
- Talk of new upside targets, possible buyouts, how DMM.to has only just begun because it will be bringing new projects online etc etc yada yada
Bottom line: Buy DMM.to now at $4.96 to $5.13, as bar an immediate collapse in the gold price it looks like a decent risk/reward play in the short term. Put your own target for a short-term sale on the chunk you buy and stick to it when the time comes. Don’t believe the hype at either end. DYODD, dude. Nuff said.
Disclosure: I own (can’t you read?)