Hi All,
My 2cents worth or should I say 25.5 cents worth?
There are traders and investors for every stock. Sometimes people do both on the one stock. There are pros and cons for both methods. How sweet is it to buy something at 10 cents, sell it for 10.5 on the same day and then buy back at 10cents. 5% gain in a day woo-hoo! I'm not being sarcastic, that is much better than sitting $ in a bank account so I say well done.
However, there are manipulators, those that say one thing and do the opposite. For e.g. say what a great stock it is at 29 cents and that they are buying up and then a while later state what a dud it is at 26 cents and to go short. Is that ethical? Is this genuine disappointment or an opportunity to buy? Is this because there has been genuine bad news for the company or for some other reason such as keeping the stock price low so they can load up? It's easy for some mum and dad investors to be spooked by someone with 15,000+ posts but when you look at how many great analysis or lightbulbs they have if it's still in single digits maybe think should I really listen to this person?
My thoughts on the company and the Manano project:
A few complaints I've read recently on this site include:
1) That it will probably take 4-5 times the $ the company has access to in order to build a mine. Probably true, but isn't that what banks are for? Borrow money at 5, 10 or 15% so that you can invest in your business and make more. Don't we normally put down 20% for a house deposit and get a loan because we don't have the 4-5 times the $ it would be required to buy the house outright? ASX listed companies can also go to the market for a capital raising or take on a partnership or sophisticated investor. So for me, the raising of $ doesn't seem like an issue to me.
2) Another complaint is it's too far from existing infrastructure. Well, guess what? Once upon a time so was Tom Price & Newman in W.A. Hundreds of kilometres from port with no railroad or decent roads. But you know what? Where there's $ to be made companies will invest it into making railroads, building roads, camps, heck even towns. When RIO & BHP saw the world-class assets in the Pilbara, they invested heavily knowing that the long-term benefits were real. How did they get their massive trucks to the Newman when there was no road? They simply drove through the bush, creating their own path for other trucks to follow.
3) Another complaint is that there are too many shares and the market capital is already too big. True there are a lot of shares and it has a $4.4 billion market capital. But you know what? If you have an income producing asset that has the potential to make $440 million profit a year then you're buying into a company with a PE of ten. Less than most of the market at the moment. Does AVZ have the potential to make more than $440 million a year? Depending on output and prices, I think so.
4) It takes too long to get drill results. True, but there could be logistical delays for this as well as strategic timing.
5) It's in the Congo and there are many issues re: mining and the government there. True, but this could create an opportunity for a company to go in and operate in a safe, sustainable way to create employment for the local community and improve their standard of living, while at the same time helping to reduce our reliance on gas guzzling cars that harm the environment.
6) A trade war caused by some Dick who thinks he's somehow being cheated because other countries can somehow make products cheaper than his country. Really we've got no protection against this, it could all turn sour for all of us because of this one daft move. But you know what, even if the U.S. has a slower rate of accepting EV vehicles, there will still be plenty of demand in Europe and China where there will not be a tariff applied.
What are some good points about Manano?
A) World class intercept of 282 metres. Please feel free to let me know if there is a better hit than this? Does this remind anyone of the world-class iron ore assets that BHP & RIO invested in all those years ago?
B) Beijing National Battery Technology Co visit. That's not on a whim or for a fun holiday as there are plenty of other places you'd choose to go to first.
C) The expected demand for EV materials seems to be quite high. In the past year, we've seen major announcements by AJM, PLS, TAW (lithium), AUZ (cobalt) and probably a heap of others. Please feel free to add to this list.
D) It could provide a good % return for traders. Buy at 25 and sell at 25.5 is a 2% gain in a day, nothing to be sneezed at. It could also provide a good % return for long-term holders as many who have been in for over a year have seen the stock rise 2.5 cents to 25.5 or over 1000%. Lucky buggers, I wish I was one of them. Conversely, some have lost $ as they bought in at 37 cents so are probably down approx. 30%. I'm hoping that your situation turns around in the future and you go from being in the red to being in the green. It might take days, weeks, or maybe months, but I think there is enough in this company to keep me invested for the long term.
I'm not ramping the price up. If you want to invest fine if you don't that's okay as well. Just make sure you take the time to do some research before doing either and good luck to whatever you do ST or LT.
Expand
