my opinion has been really clear and straightforward : if Orocobre could avoid further delays and dilution, then this is clearly a terrific investment opportunity even at these prices (a multi billion $ company in the making). But given the poor track record of management, there is more risk to this rosy scenario than what most investors are willing to believe.
As for shorting a junior mining company...seriously....these creatures are so volatile, unpredictable and most of the time are extremely either undervalued or overvalued, that anyone shorting them or trading them on a daily basis, could loose easily his shirt without a moment notice....either you go long and try to take some profits in the process when the stock spikes from time to time, or you simply dont touch them.
for example, look at syrah resources, a graphite play, it is clear to any graphite analyst that the company is more than extreemely overvalued (they want to flood the market (doubling world supply) with cheap graphite, what a great strategy lol) it is now a 800M$ cap company, is it wise to short it ? of course not, because the junior miners thrive on hype and irrational expectations, as long as the company is not producing anything and just touting its brilliant plan, it could work for them for months or even years ! once they start producing and executing their plan...the ugly face of reality will show itself to desillusioned shareholders....(remember orocobre at 4$?).
ORE Price at posting:
$2.45 Sentiment: None Disclosure: Not Held
