Thoughts on future market strength & Revolver Resources (RRR)

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Question asked 21/05/2022

Thoughts on future market strength & Revolver Resources (RRR)

Hi James, I appreciate the openness of your commentary and so can you please clarify your core premise for anticipated strength over the next few months. It seems to me that with interest rates rising, disposable income falling, and earnings forecasts either being withheld or indicating profit contraction because of increased input costs, and all stocks other than REITS and utilities now ex div, there are very few catalysts for any near term strength whatsoever... Thanks for continuing your brilliant work...No other service like it, or as relevant as your work is... Revolver Resources (RRR). Are you aware of it or ever considered it? They seem to be generating excellent drilling results but the share price can't seem to get any traction. Any thoughts as to why that might be?

Answer

Hi Tony,

We believe the market might be poised to enjoy a countertrend bounce, or a little more, primarily because the market is positioned so negatively, by definition the nature of your questions adds to this bearish consensus which begs the question “whose left to jump off the train”. However we do think the next 1-2 years will be more about sector rotation and selling rallies as opposed to buying dips but assuming equities are going straight down because there’s plenty of negative news is fraught with danger, remember we were basically at all-time highs last month and the macro backdrop hasn’t changed significantly over the last few weeks.

As for Revolver Resources (RRR) our view hasn’t changed since April, the $76mn copper developer hasn’t moved in 18-months hence we see no reason to “fight the tape”.

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Revolver Resources (RRR)

LAST UPDATED 20/05/2022 16:14

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