Another Reason For Low-Ball Bids

One of our Portfolio’s silver explorers has been crushing it lately, acquiring new assets and reporting good progress towards becoming a producer. This operating success, combined with rising silver prices, lit a fire under the stock. Here’s 2025 up to June 9:

Investors who owned some but not enough of this stock no doubt watched its quick doubling with a serious case of FOMO (fear of missing out) and were tempted to go all-in “at the market” to ride what looked like a sustainable wave.

Pouncing on a hot stock can indeed pay off if the trend continues. But with emerging miners, big gains are frequently followed by sudden corrections, in part because company managements view nice runs as an opportunity to raise more capital. And big share sales tend to end nice runs, at least for a while.

That’s exactly what happened here, as the doubling was followed by a major stock sale. Investors, lulled into a false sense of security (or a nasty case of FOMO), were caught off-guard when the stock dropped by an amount that a well-placed low-ball bid might have exploited.

Here’s the stock, the financing announcement, and the resulting share price action: