First, AZY is a speculative stock. All stocks are. Small cap stocks and those with limited revenue especially so.
AZY listed on 20 April 2011 and the first day it closed at 20.5c. It had only 50,200,000 shares on issue.
The long term intraday high was 31c on 7 Sep 2011. The highest closest price was also that day at 26c.
We ended 2011 at 8.5c, ended 2012 at 6.5c While it did pop to 21.5c in 2013 it resumed its downward trend. In 2013/2014 the gold sector was stone cold. Another issue for AZY was the release of new shares to market - at the time of official listing in 2011 about 20 million shares were held in escrow for 24 months (common with new listings). This meant they couldn't be sold during this period. This changed in April 2013 and put pressure on price.
Between October 2014 and June 2015 it was possible to pick up cheap shares on market for between 0.004 and 0.006, as well as in cap raisings with free options.
June 2015 price did pop to 2c on exploration news before dropping to sub 1c by late July. From then until October it was possible to buy on market at sub 1c. We jumped from 0.008 to 2.5c on RIO JV news in Oct 2015. We topped on 18 July 2016 at 0.068 and then downward next couple of years. I think the low may have been around 1.2c in 2018 before reaching 0.037 on 27 and 28 Nov 2018. Price then declined through 2019 until a buying opportunity in Dec 2019 to March 2020 when shares could be picked up between 1c and 1.4c. We started a run in mid April 2020 which took us to 6.2c on 12 Oct 2020.
We closed today at 3.9c, having been in decline since October like many other goldies.
To illustrate my premise that long term holders are likely not underwater but well in profit, AZY only traded in the 10s and 20s for some of the first 2 years and ended both years well under 10c There has since been lengthy opportunities to buy high volumes of shares sub 1c down to 0.004. Many of the large holders actively supported these cheap raisings.
An example is say a retail shareholder buys 100,000 shares at 20c each sometime in 2011-2013. That's $20,000. He/she might hold but decides to spend another $20,000 in shares in 2014/15 at 0.005. The holding is now 4.1mill shares. Total cost was $40,000. Today's value is $159,900.
Perhaps they had instead bought $20,000 of shares at 1c each not at 0.005. That would mean 2.1 mill shares now held at value today of $81,900. Still in profit.
Personally I'm a long term holder. first purchase on 4 April 2013 - 20,000 shares at 9.6c. Owned 160,856 shares by Aug 2013 for total cost of $8911. Average of 5.5c. That small holding was underwater for a long time. But I bought through 2014, 2015 and 2016 at which point I held just under 11 million shares. 1 million shares at 0.005 is only $5000.
I did sell all my shares but I rebought in Feb/March 2020.
This is a very convoluted way to say there really is no issue of long term holders being underwater. We are doing just fine. Also remember the total shares on issue back then was only 50,200,000. So only a fraction of shares still held today were bought above 10c.
AZY Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
(20min delay)