Good Morning. I sell all or part of a stock play depending on specific criteria. Try to focus on pinks/otc stocks that have real revenue exisitng or forward. With that, short term chart/technical indicators give direction for entry/exit strategy.
With GBDX, only sold a minor amount on last run when WWCD merged with GBDX; my play was .0062 to .035. However, I have kept the majority +-2.3M sh count because of the large revenue potential IMHO this stock has.
IMHO keys :
*Extremely low share count-75 million
*New change in russian law regarding export quota % of rough cut diamonds creates much larger revenue potential now.
*GBDX had existing contracts with russian cutters and exporters in place that could be expanded now that new law was enacted.(WWCD merged w/GBDX to exploit this IMHO)
*Perfect timing in now explosive diamond market for large gains.
Mgmt. who orig. merged with WWCD netted over $2M in cash for the sale of WWCD. Taking this profit and using GBDX as a conduit in their next successful venture. IMHO, so smart to seek out GBDX, a 17 year old company with exisitng presence in the NY diamond district, and more importantly, existing contracts and relationships with russian companies. GBDX just didn't have the strength or $ position. Possible merger of a russian cutter or exporter in the works?
Would create even larger profit margins for GBDX.
Also, key technical indicator for me is SAR-pps cross of this is huge. Currently SAR @ .025, pps setting up to blow above this and continue up. May have very short term base with bs little profit takers around .036. After that, .10+ IMHO is next.
Best Regards, Not a buy or sell recommendation. My opinion only.
