DRE 5.88% 1.6¢ dreadnought resources ltd

I think we need a new announcement, page-27

  1. 8,480 Posts.
    lightbulb Created with Sketch. 2788
    Company A has $65m in cash and trades close to cash backing. Company A makes a decent discovery, which coincidently is valued at $65m. Subsequently, the share price for company A doubles in value, presenting a 100% return.

    Company B on the other hand, has very little in cash but trades ~$1m in capitalisation. Company B makes a similar discovery to A and it too adds $65m in value to capitalisation.

    Simply, company A returns the punter 100%, while company B returns the punter 6,500% for the same discovery!

    Personally, the risk/reward goes to company B and that's (just one reason) why I know I'm punting in the right place - but thanks for pointing out a different stock which has NO relevance to this thread.

    Cheers
    SD
 
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