DTR

Dateline Resources (ASX: DTR, OTCQB: DTREF) continues to go lower in share price. The term some like to use is: the bears are in control. 

Was it overvalued when it hit 67 cents? Given the current knowledge, yes, it was overvalued. However, once the expectations (actually, reasonable expectations) are proven up, then no, it wasn't overvalued, in fact it was well undervalued.

Is it undervalued now? In my opinion, yes it is. It represents, right now, an excellent buying opportunity. And here's why:

The US Administration will go back to work once this political mess is sorted out;

The assay labs will continue to work through the backlog and our samples will reach the top of the pile;

There will be a funding deal for DTR from the US Government;

The amount of gold DTR has will increase substantially (to multiples of where it is now);

The grade will be good;

DTR will almost certainly continue drilling to test and explore while they are planning and building their mine site buildings and infrastructure (after all, who wants to put a building right on top of where they could be mining rare earths?);

The stockpile (which had never been tested) will deliver results that provide significant funding into the company while the construction and further exploration continues (at a guess, until the assays come back, around $70 million);

Even more shares will move across from Australia to the USA;

The rare earths results will come in and be seen as spectacular;

Mountain Pass (the neighbour) will get its processing plant fully on line and be able to take the extra load;

Donald Trump will take the credit for it all when he makes a snap announcement about the (Dateline's) Colosseum Mine.

All of that will drive the share price sky high and give shareholders an interesting tax problem (remember, this is my opinion and my understanding from my research, so please do your own checking) .

How high? Well, some bullish Americans have thrown silly numbers around before and they should really be seen but taken for what they are: silly. But understand that it is the Americans who will drive the price up. The Australians may start it, but the Americans will finish it.

Is $1 a share possible? In my opinion, yes. This year? Still yes.

Is $US1 possible? Again, yes. This year? Probably not. I feel that could be an early February number.

But if you are prepared to put your shares in the drawer and not touch them for a while, I believe substantially more is on the cards. And the way the Americans are talking, $US5 is where their numbers seem to start, and they go much higher than that. In my opinion, silly. But it does indicate that they are prepared to drive the price a lot higher.

Have the Americans done this sort of price rise to a stock before? Yes, with Gamestop. That story is legendary and there is a lot on the internet about it, or you could watch a 2-part series called Eat The Rich.

How far did they take Gamestop, from $17 to over $500,very quickly. That is the same as taking DTR from its current position to over $5.

Now there are things standing in the way of that (see above) including that DTR is one the OTC boards and not on the NASDAQ. But it does show the American appetite for growth.

What does all this mean? For current investors, I reckon you should hold tight, don't blink, don't sell. For everyone else, this is a great time to buy.

Remember, this is my opinion, it is not financial advice. And if the current situation is causing you to not sleep at night or is causing too much anxiety, please sell your shares and find a company that doesn't ride the roller coaster quite so hard. Your health and wellbeing is more important.

Me? I'm staying where I am and hanging on to my shares. I just wish I had the spare cash to buy even more.