Good Morning. I guess we all have opinions to what
a stock will do. Your response back however is somewhat flawed.
1.)There are not hundreds of Diamond dealers in NY with the existing strong contracts in place with prominent russian cutters and exporters that GBDX has. GBDX is only being used as a conduit for its contacts; and the new change in the russian law. Wholesale diamond sales in NY are all based on cost and quality of product, period. The more direct contact a wholesaler has with the product directly, the more margin upside available. Regardless of supply thru Israel, etc. a direct connection to russian diamonds (the best quality), the better.
2.)To say "one would expect The store to just open and additional orders come in when they come in" is incorrect. GBDX is a wholesaler and with a new opening of a wholesale office, smart business sense says do not open until you can deliver, period. If the demand is that great, to open and not be able to deliver would send a negative message to other buyers, creating a feeling of nonperformance. Also, to say "Big deal, Diamonds are small so shipment is really no big deal". Wow!
Timing of the opening to delivery capability is what continues demand and success. This is not a "store", but a wholesale enterprise.
3.)To say, "Expect a lot of this from Russian stocks in the pinks>/That's why the stock is floundering". Seriously, first, not a russian stock and any long term penny trader knows the pps action from .016 to .032 and now back to .022+- is based on chart technical analysis and indicators. Short term momo pushed pps to the top of the upper boli band, full stochastic hit 80 and the 3-4 day sell rule with flippers taking 80%+- gain took effect. Monday morning a small sell off created a bail out; back to 50D MA. PPS now basing at 50D MA. The key to focus on as a penny trader is the super small total float/O/S amount and revenue comparitive. This creates the big sustained increases in pps, and attracts big block traders. Sure, take profits along the way; as we all do, but keep strong position and add more on short term sell offs.
My going into this play is based on such a small float 75M with a real pending large revenue comparitive. Shell/merger/reverse merger plays can be explosive.
Lastly, for you at the end of your response to then promote another stock your already in; cmon.
Best of luck to you. Not a buy or sell recommendation. My opinion only.
