Why is it that a lot of people attempt to value high risk speculative shares like they are blue chips?
GDN is NOT bhp or wpl or sto....
At this point in time, and for the last few weeks GDN has been accumulated/traded/bought and sold by traders and punters. Most of the people playing the stock are taking it for what it is, an opportunity to make some dosh via some sensible trading.
I mean at this point in time we dont even know if GDN will turn out to be a successful producing company, so as a result it must be treated as such.
The stock has already gone from 4 or 5 cents (approx) to 10 cents pretty quickly the options have also more than doubled. What a great opportunity it has already been regardless of what happens from now.
theres no point trying to value the company like it is an investment grade stock, cos it's not. And may never be.
It always amazes me that people attempt to arrive at values based on fundamentals, and formulas etc etc, when all we are dealing with is a stock that is currently moving purely on sentiment and newsflow.
Ok, in 1 or 2 or 3 years time if GDN turns out to be a nice little producer of gas, then fine, whack your p/e ratios on it, hell they might even be paying dividends by then lol.
But seriously, why try to make it something it isnt? Honestly, do you think 99% of the punters/traders that are in the stock give a rats toss about the flow rates of the first well? I certainly dont.
I'm not just referring to GDN here, but so so many stocks. I see it all the time. These geniuses spend weeks and weeks coming up with calculations to prove that a high risk speccy stock isnt worth what it is trading at on the market. Well of course, most of the spec stocks out there that go for runs aren't worth anywhere near the market value they rise to lol.
If these dogs/speculative/high risk companies never ran up to over the top values how in the hell would any of us traders ever make any money????
The amount of time people spend on trying to do fundamental analysis on companies like GDN they could have traded it 20 times in and out and picked up thousands of dollars in profit.
My point is treat these stocks as they are!! Higher risk trading stocks.... Play the game as it is.....
GDN Price at posting:
10.0¢ Sentiment: ST Buy Disclosure: Held
