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Ann: Presentation to Noosa Mining and Exploration Conference, page-31

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Justis

60,591 Posts.

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22/07/19

10:53

Post #: 39627246
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Originally posted by observing: ↑

Sheesh who'd a thought - 'Yahoo Finance' May 2nd 2019

Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We don't wish catastrophic capital loss on anyone. Imagine if you held Troy Resources Limited for half a decade as the share price tanked 92%. And some of the more recent buyers are probably worried, too, with the stock falling 38% in the last year.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.

Troy Resources isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last five years Troy Resources saw its revenue shrink by 8.4% per year. That's not what investors generally want to see. If a business loses money, you want it to grow, so no surprises that the share price has dropped 39% each year in that time. It takes a certain kind of mental fortitude (or recklessness) to buy shares in a company that loses money and doesn't grow revenue. Fear of becoming a 'bagholder' may be keeping people away from this stock.

A Different Perspective
While the broader market gained around 9.8% in the last year, Troy Resources shareholders lost 38%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 39% per annum loss investors have suffered over the last half decade. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize.

https://au.finance.yahoo.com/

I like the bit where they say money isn't important as health and happiness
Worthy of consideration is the long term perspective.

Gold On

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Yes well that is all quite right but investing in try at the moment is not about current profitability, it's about future profitability and OC is showing good potential to deliver that.

Try use the strategy of getting in build a plant on the cheap with short payback period then use the cash flow to exploration to extend LOM. They have used that successfully and paid dividends for quite a few years, the problem with that strategy is that LOM is never all that long but it's not an issue when making profits and paying dividends.

LOM is the issue try has atm but OC looks to be a game changer, especially as by the time OC comes on line try will be debt free

TRY Price at posting: 9.4¢ Sentiment: Buy Disclosure: Held
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