DRE

When I looked at Dreadnought Resources (ASX:DRE) on 30 August I said they were a great opportunity right then. They were at 1.2 cents and I suggested that the recent tiny drop in share price would reverse.

It did. It got over 4 cents at one point. Yes, triple your money in less than 6 weeks.

They have dropped back to 3.1 cents and, I suspect are still looking for a settling point.

DRE seems a little over-optimistic to me (aka they fall a little outside my risk envelope). Why? Well, they certainly seem to have the ground and the gold, but they are using higher valuations than others on their gold and there is still a lot to be done. I suspect that the share price will fall to around 2.5 cents, or a bit lower, before it settles. I will check back in Feb to see how they went. 

I have had time to really think about this. These guys are supposed to be professional but they are leaving too little margin for error, margin for price movements in gold, here. As it's my money I invest with, I ain't going anywhere near this.

I am unimpressed with management and I suspect that the share price will reflect a similar lack of confidence as things progress. As I said, not for me.