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$1.25 hot chili limited

$?Bill in a ? Life mine, page-5620

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Bluegumnuts

6,059 Posts.

758

20/04/21

09:05

Post #: 52582435
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Originally posted by tinhat: ↑

The better question to ask is what was the price of copper doing eleven years ago? Look at the copper price in 2011 and look what happened between 2011 and 2016. A junior explorer is highly leveraged to the underlying commodity price. They have to keep going back to the market to raise funds to pay for exploration, but there is no demand for shares in a loss making junior explorer when the commodity price is down the toilet so they have to issue more shares at depressed prices and throw in options to raise money to keep going. Massive dilution ensues. They have to issue convertible notes because they can't pay interest on the principle and that continues to dilute. It's a matter of survival. Then as prices start to rise there is a massive overhang of supply as people who felt stuck in the stock see an opportunity to get out.

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yeah half the truth with that... @glemon had previously shown the whole company 3 billion shares were traded over a few months! It’s a traders paradise until some big money steps into the arena.... Be prepared for a long wait!

HCH Price at posting: 4.4¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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