DML 0.00% 1.9¢ discovery metals limited

Eye openers. From the view of a long term holder

  1. 10,351 Posts.
    lightbulb Created with Sketch. 555
    As a long term holder I should have seen the warning signs a long time ago. They were right in front of me.Personally I just didn't want to believe it so I stuck with my holding hoping for a deal like the CP offer to be executed.

    The eye openers that should have been....

    1. The board at the time of the CFC offer did not want to open the books for CFC to complete DD. What was there to hide? If everything was in order CFC may have even increased their offer price and Shareholders still would have had the opportunity to reject the offer.

    2. Price started fall at a rate in excess of what one would expect once CFC withdrew the offer...

    3. At no point did the directors buy shares other than a few in the 60 cent range while it was on the way down.. Note: The purchases didn't hurt their wallet!

    4. CFC wanted to look at the books again but no offer forthcoming.

    5. Blumont transaction falling through.

    6. CFC selling their holding at a $100 million dollar loss at about 11 cents (I'm guessing they recovered some by shorting the stock on the way down)

    7. Blackrock, a major fund and substantial holder selling their holding at about 12 cents.

    8. The Monstat deal falling through

    9. The rights when in the 2-3 cent range issue not getting approved by the lenders

    10. The Cupric DD not progressing to anything eventful

    11. Massive buying volume over 3 days after the CP announcement with no substantial shareholder notice issued (may have been orchestrated by the big boys selling out)

    12. Blumont, a major shareholder selling part of their stake at a significant loss (we suspect they had inside knowledge). The low life's then try to justify the sale as being required to pay down debt.

    13. Transamine selling a substantial stake (we suspect they had inside knowledge)


    14. Significant price drop from 11th Feb. Without the knowledge of the letter from the lenders this should still have raised flags considering the CP deal was pretty good and still undergoing DD.
    Think about it. At 2 cents no one had put any value on the CP announcement..


    This info is not 100% accurate but still a summary of the warning stocks.


    Feel free to add any further info as you please.


    What was my best investment at one stage has proven to be the worst.


    Re-evaluate all the stocks in your portfolio and if you see any similar flags seriously consider your options
 
watchlist Created with Sketch. Add DML (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.