To The Moon

$AML3D LTD(AL3.AU)$ It has been a while I last shared this company. No... I have not sold a single share... And yes, I have been holding on all the way down... Furthermore, I have been actively adding to my position.

Sometimes, we do need drawdown control. However, it is still dependent on individual stocks and individual's objective and outlook for the company of interest.

AML3D is a company that I had absolute fate on early in its run. I have been raising my position slowly, resulting in a much higher capital base. For the first time since my initial investment, the price had actually gone below my cost! I have added once or twice since. It's not irrational decision, nor is it for the purpose of averaging down.

The corporate front was pretty quiet during those months of tapering down. Looking at the old news release, I know there's more to it than waiting for things to happen. There's simply no reason to sell, because AML3D is quieting doing what it said it was doing. It's the build-up and delivery phase after all.

True enough, the company announced one of the best FY results ever. There is no surprise here, with the company's prior announcement of sales win. The company has also been strengthening its personnel, especially those with plentiful of military contacts as directors.

There will be continuous period of silence (i.e. without further announcement), but this is by design rather than a show of corporate weakness.  This is the build up and delivery period. With proven technology and good contacts, sales win is just a matter of time, not execution. This is the quiet period I love to continue my slow accumulated of shares.

From a technical perspective, AML3D is looking good too. It has earlier broken its downtrend line after a double bottom formation. After fulfilling the initial target of 15 cents, the company share price is consolidating. MACD is positive. Volume spikes showing increasing interest. RSI at 72 is slightly overbought but still keeping well supported. KDJ is showing some consolidation, which is positive on its own way. 

14 cents appears like a good support and a flag formation in this short consolidation phase. I would expect the share price to test 14 cents and rebound back up strongly thereafter. The target price for this uptrend is 23 cents, a 8.5 cents from current price or 37%.

To be sure, this is the beginning of the new run. How far this can go would depends the corporate progress... Namely progression in sales over US and Europe. Military contacts are solid and sticky. This doesn't stop AML3D from winning more no military contacts, which we should increasingly see in the next few quarters to illustrate further signs of progress.

For now, I am happy for what the company has shown. It justified my actions through the downtrend. If this is not the time to add, there's no good time to do so...

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