Should not invest in speculative micro cap mining stocks if you want any kind of stability. Nice gradual rises and falls just don’t happen here, when only a few fractions of a cent can equate to multiple percentage point rises and falls, on the back of just a couple hundred grand or less actually being traded.
Sure, volume is low. On its face that might appear to indicate a lack of buying interest, but what you’d be failing to appreciate is that it’s more likely because there’s been very little volume on offer from sellers. When I last checked there was just ~$100K worth on offer from 9-10 cents. Why buy at 10 cents or just below when a little patience might get you them at 9 or less.
Short of the price just gapping up massively on the back of a great piece of news, how the price has been rising in the last few days is exactly how you’d expect it to rise right now - there’s not been major catalyst to cause a stampede and FOMO type buying but the new presentation has clearly impressed a few people…so those now wanting to take a position are apparently just patiently waiting for the supply to come and for their orders to be filled. Buying as low as they can with the limited supply on offer. They risk the stampede happening and their orders not being filled, but that’s the nature of the game here.
Similar principle often plays out on the decreases too.
Volatility only reduces once the many hundred or billions of dollars type market cap levels are reached and there’s more shares and shareholders and thus more liquidity. That comes with allowing the company time to make progress and slowly de-risk things as they go.
MGU Price at posting:
8.7¢ Sentiment: Buy Disclosure: Held
