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Alias Born | 08/03/2010 |
Tuesday, October 12, 2010 2:29:14 PM
Call me an elitist, but most of the public is scientifically illiterate (speaking as a US citizen, and no offense to the wise-but-unschooled worldwide).
John Q. Market reads charts, and headlines, and articles by Motley Fool and PennyPumperPix.com. Not too many of them can read a post from OMO and know what they are looking at if you are talking about porphyry deposits in glaciated caldera formations. They don't understand the proprietary components of elements that cause them to make predictable anomalies in magnetic fields. Ditto for commercial land title transfer recording documents registered publicly with the state of Alaska. There are a lot of traders with decent number crunching skills, but they don't have a clue what actually drives the value of this thing like the geologists at NAK or HDI, who looked at the data and immediately made preliminary arrangements to work with LBSR. Do you really think the frantic day traders have anywhere near the sense of these scientists who work successfully for years in this narrow and competitive sector?
In the penny stock world, it is easy to find ridiculously overpriced non-companies that somehow have millions of dollars in imaginary market cap based on hype, but no product or revenue. Because of this less than sterling repute, assets being seriously underpriced can also be hidden behind attitudes about unsafe penny stocks. Large institutions aren't allowed to invest here, so without deep pockets and serious analysts onboard to read the facts and scoop up cheapies en masse, there is serious volatility and stupid prices.
Unless it suddenly becomes easy to locate lots of gold pits with the potential for 6-7X the Pebble's deposits, this is a great opportunity. Reminds me of that lone receiver who escaped his defender and waits unnoticed in the end zone for the long ball.
Like us, he has good hands and minimal coverage.
Recent LBSR News
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