MNB 1.89% 5.4¢ minbos resources limited

Pie in the sky for you. Very likely outcome for me. That's why...

  1. 13,745 Posts.
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    Pie in the sky for you. Very likely outcome for me. That's why you don't hold and I do.
    No holder likes the delays or a lower sp (unless they are underweight and want to add) but a lower sp is something any investor in any ASX stock needs to understand is going to happen at times. Despite reducing my target to allow for more dilution than expected a year ago, the upside is still measured in the multiples and for me, the risk/reward ratio continues to improve the lower the sp drifts. These are the situations that often return 100% plus very quickly on any turn in sentiment and any one piece of good news can turn sentiment quickly. For MNB that might be starting with the Carrinho offtake.
    It's not just small caps that can be this volatile.
    TSLA dwarfs not just MNB but also most ASX stocks by market cap. It had a great run up to 2021, the same year MNB hit 21c after quadrupling in just 4 months from a 4.9c low to 21c, then TSLA fell by 76% over the following 12 months from over $4 to $1. From that level, which may have been deeply oversold, it doubled in just six weeks and then went on to triple from that low over the next 5 months.
    I would normally expect a small cap stock like MNB to be much more volatile than a very large cap stock like TSLA on sentiment swings.
    Coincidentally, MNB is also currently down 76% from its 2021 21c peak but it took longer to fall by that much. Most likely because TSLA got more overbought in 2021 than MNB did.
    18 months after TSLA's $1 low, it's now 80% up from that low. I expect much better from MNB over the next 18 months.
    Financing the last part of the project's capex is what is needed to see a big sp turnaround - and I mean big from here. I expect that the last part of financing will happen so I'm waiting for it.

    TSLA chart

    https://hotcopper.com.au/data/attachments/6267/6267922-eb2bbfa0fec91bddc2ac6c760ca60833.jpg


    Last edited by chuk: Monday, 17:26
 
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