TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
Sometimes good news hits the tape and investors ignore it. To be fair, investors in the TSXV have been pounded for nearly 4 years. Retail investors are now the experts, not sell-side analysts or newsletter writers who are forced to be bullish on paying customers! When a big shot like Rick Rule says that now is the time to buy, guess what? He's not buying because he can't build a large enough position in a $5-$25 million market cap company to move his needle. That's actually good news for savvy retail investors like us, with several hundred thousands of dollars to play with, not several hundred millions.
It sounds easy enough, how hard could it be? Find decent management teams, with liquidity to ride out the next 12 months and the ability to advance projects, even if not as rapidly as desired. For instance In lithium I'm invested in Dajin Resources. (DJI.V) (DJIFF). Juniors are low-cost call options on a rebound in natural resources, but some juniors have more upside than others. When hundreds more zombie juniors exiting stage right, a tsunami of capital flowing back into the sector (timing unknown) will lift all surviving boats. Dajin is without question a survivor. For an excellent corporate website with info-graphics and the latest news on lithium and the Company, please click here.
On July 15th, Dajin Resources announced that it signed an agreement with the Mining Cooperative for the Production of Borates, Ltd., in Jujuy Province, Argentina. Before anyone shouts that Argentina isn't a “safe” jurisdiction, don't bother. Something like 70% of the world's lithium comes from Argentina and Chile. Nevada has excellent early-stage prospects as well. The press release (see below) announced that Dajin was able to lock down roughly 11,000 acres for a down payment of…. wait for it, …. $60,000. $60k to control an additional 11,000 acres is a great deal. This property is not in the middle of nowhere, Dajin's Management, Board, consultants, and Technical Advisor Board contemplated this move for some time before pulling the trigger.
