Thanks for the reply, a quite logical one, here's my respond.
The company's share price has effectively stagnated for the last 7 months while the lithium sector has been hot.
If 7 months you are referring to say.. April, let's look at what other companies in the lithium sector has done since Apr:
PLS - From roughly 45c to 87c high and now sitting at 55c - Less than 25% appreciation.
AJM - From 17c to 28c high and now sitting at 15c - Around 10% depreciation.
GXY - From 28c to 58c high and now sitting at 34c - Around 21% appreciation.
KDR - From 8c to 82c high and now sitting at 45c - 560% appreciation.
BGS - From 12c to 52c high and now sitting at 30c - 250% appreciation.
Using your timeframe of 7 months, I'd hardly say BGS is stagnated... If you push the timeframe to 9 months, we were at 4-5c, around 16% of current value.
I understand that people would have bought in within the last 7 months when BGS was almost at its high and now underwater, but that is investing. No one knew the potential of BGS in Feb, therefore, some could buy at 4c. But once the words get out, you expect to pay a little more. And this cycle will apply again when BGS has the Feasibility Study and other MOU or offtake agreement, then some may only be able to buy in at 60-90c (who knows). This is a cycle.
The ones that had bought at 4c, was the ones that bought in during BGS' last high at maybe 20-21c (post consolidation). In which they had to wait and suffer the redness from 20c down to 4c, before reaping in the rewards of 30c now or 50c a couple of months ago.
I think some of your other comments will have to do with what is one's average. One could sit more comfortably with an average of 10c oppose to 40c. But then one also has to realise buying near the top contains the risk of SP retracing, which is a normal reaction after SP ten-bagged in 8 months.
Also, a higher share price lowers dilution when CR's (and the inevitable discount) arise.
I don't believe for one second that BGS will or want to CR until they have at least a Feasibility Study and an offtake agreement, and I think by then, SP will be higher than what it is now. It could have been a concern if BGS didn't have enough money to drill, but we do, $8m in the bank with options for further funds. I understand your point but I personally don't believe it's a concern for BGS for now.
Look, at the end of the day, my point is, things will come, it's just that patience is required. The market or traders currently value BGS at 29.5c, whether you think it's fair or not, this is what the majority value BGS as. I personally don't believe that is the right value and I again, I think SP will follow the company's fundamentals. I believe BGS has a good enough lithium resource that can make us rich IN TIME.
Expand
