So let me get this straight. You think they only did this to give themselves bonuses? (
@sbvb) Also, I believe they were given a stock incentive instead, stating that within a few years if the SP hits 50c, they would be rewarded with more stock.
So basically you're saying they didn't do this for the tens of millions they raised that secured the company for the longer term, accelerated exploration, and allowed them to diversify by exploring other sources of energy?
One of the big risks for EXR pre-CR was they had a short cash runway, not much money to survive issues if they arose. They're banking on drilling in Mongolia being cheap. Importantly, they aren't generating any revenue yet. Which means there is a ticking clock on their ability to finance the exploration. They saw the stock price accelerate and saw an opportunity to secure funds for the longer term. This reduced their risk of running out of money, and probably attracted longer term investors. It also allowed them to diversify their venture into other types of energy, while accelerating their current programs and proving their rinse and repeat model. It's a slow runup.
This process to me is huge, because right now, China is not being an attractive business partner politically towards the west. So the quicker EXR can prove these resources, the better. As part of the plan was to be bought out at some point. (If I'm not mistaken?)
But have patience.
If you only put as much money into this stock as you were willing to lose, then there shouldn't be pain. If you're feeling pain right now, you should sell and go do something else.
As someone who has plenty of skin in the game, I'm okay with what they're doing. I'm paying attention to what they're doing to build their company and prove resources. The SP will reflect this value in time. And if it doesn't, oh well, I've lost my money, but I'll survive.
I've also learned my lessons with crypto. I had 2 BTC at $900 years ago, an automatic stop loss sold after a flash crash. Months later, the price hit 20k. I felt terrible. Then it went back down to $3k for a brief time a couple years ago.
Guess where it's at now. It topped at $70k.
Fundamentally, that's not a fair comparison. EXR is not crypto There's more tangible evidence that EXR has a huge potential value. They just need to keep ticking boxes. But it illustrates my point. The stock market is irrational. You have to wait for everything to line up.
In the long term, this will mean the company is far more valuable.
That's just my take on it though.
You don't plant crops and harvest it all at the first sign of growth. You wait until the crops are mature, when you can harvest the highest yield. (I'm not a farmer, idk what the hell I'm talking about)
Long story short. Just wait. Hodl. Diamond Hands.
You know. All the things the kids say these days.
