AKK austin exploration limited

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  1. 1,627 Posts.
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    Nothing in life is certain not just the market.

    With regards to Market cap there are 2 ways to look at it ... first is that AKK is $40m but with potential could rocket into the stratosphere ... I agree. There is another way to look at this; AKK is $40m but is yet unproven and has much work to do (which carries great risk) so this could evaporate.

    Nearly all small cap companies have "something great to offer". You can hear this stuff ring when you talk to a broker that is doing a placement for the company.

    After all the research that I do before I enter a stock, in in end I simply look at shares as a movement in numbers. I it moves up then its a success. If it move down its a failure.

    Simple fact is that since the "new" AKK came to existence since last June the share price is 3.1c. If people purchased at 3.5c (which was the last big placement) and held ... they are losing money since 1:2 AKKOA attached is no worth 0.3c equivalent.

    Buy and Hold strategies (like 4-5 years) may be ok for larger stocks with proven assets, cash flow and profitability but not the speculative ones. Also with all the government money printing around the world to prop their "economies" why would you have a Buy and Hold strategy ... the probability of a GFC2 is just too great to hold for the long term.

    There was a thread about hat would happen to AKK if a GFC came ... well let say you will be glad that your shares only fell by 50% after the event. Then again the GFC2 will also present some absolute bargains for those with money.
 
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