The company’s recent presentation outlines their prediction for completion of milestones/activities.
If you’re a long term holder, who bought the stock on fundamentals (i.e the company getting to production), then the short term share price fluctuations should only serve your interest to either sell (if you believe overvalued) or buy more (if you believe undervalued and have the funds).
I'm consistently baffled as to why seemingly longer term investors base their sentiments solely on SP fluctuations….. particularly after we’ve had a very bullish update, which shows a lot of near term catalysts that could spark a re-rate.
Who TF knows why the SP moves the way it moves for a spec stock, or the recent selling ? Someone could be suppressing the SP, hoping to get in cheap for a CR .. Short term traders could have jumped on board for the recent update, hoping to kickstart some momentum and push the price north … dumping when it failed (seems the most logical, as selling followed the recent buying). Or a large holder may just need to sell down for a plethora of reasons (either personal, or investment).
People who get emotional with the SP, or the company, increase their odds of making poor decisions in their investing.
When we ran to 40c years ago, although the SOI was smaller.... the MC was stillhigher than it is now .... and people were then singing praises for the company.
We’re now a fraction of that, but have now : - Successfully completed PCD- Obtained a PPL - Announced a Daelim deal (early stages) - Global conditions massively more favourable. - Have a BFS imminent - Actually announced timelines for offtakes etc.
This is the spec sector.
Not every stock rises on good news …. In fact plenty of rubbish stocks in the sector get pumped to valuations that are beyond preposterous. I’ve seen companies pumped to beyond $1B MC on nothing … absolutely nothing !
Plenty of companies are also massively undervalued to many who do their DD, though it’s mostly subjective (hence the term, “speculative stocks”). And yes, it can be frustrating when you own one of these stocks and watch it stay "undervalued" for lengthy amounts of time.
But once a spec stock is on the cusp of actual revenue, then a re-rate is almost guaranteed. Until then, who knows.
We could run past $1B MC next week, or it could take a few months, or a few years (as we head towards production).
Sentiments on whether the stock is a "dog" or not, should be based on the fundamentals. As I mentioned previously, with the BFS due shortly, I think we're going to see multiple catalysts over the next few weeks/months that have a very good chance of sparking a re-rate.
(20min delay)