Since the company does not pay a dividend, it means they are 'supposedly' using profits to grow the company. That will increase the share price. If the share price does not increase (and in fact, fall) it means Mr Market does not believe management. The share price reflects management has not done well for like 18 months.
If the share price does not rise in the future then all the rah, rah boys will vanish and say 'well, investing is a personal decision'
The points I have are
1) Rah, rah boys keeps saying 'management has done an excellent job'
2) Rah, rah boys say 'nothing you can do re the price of the share'
3) Sometime rah, rah boys come up with excuses why the company is so good, management is so good, gold is so good.... but share price falls
I agree with 1 (up to a point in the past)
I disagree with 2; managements job is to make money with OUR money; if they make money (and dont just pocket it) the share price will rise
I appreciate 3 - it gives us reason to ponder what is happening
Now all is relative, hey.
If you bought at 1 (below pic), 5 years ago you are happy.
If you bought at 2, 2 years ago you are happy.
If you bought in the last 18 months, you are just confused, as in the last 18 months there has been good news after good news. Goal after goal kicked.
Now if you believe the same management that pulled a rabbit out of their hat at 1 and 2 will pull a rabbit out of their hat 'soon', then we will see the sudden jump to say 5 or 6 cents. I truly believe that will happen. And I have not followed the day to day over the last 5 years. I have just followed over the last 6 months (but as closely as I can).
BCN seems a money printing machine right now. But Mr Market is not happy over the last 8 or 9 months. I think I am just grumpy at the slowness of the management at the current situation. But, in truth, who cares re a month delay in capital management decisions. I think Mr Market big worry is the 'end of the mining'. So maybe 3.6 cents is the value at wind up of the company. Share holders at 1 and 2 will never complain at a 3.6 cent windup. Maybe they are all the sellers... they bought for a goal or two, now have seen the goals, and think there no more goals. They sell at 3.6 to 3.8 and leave the new holders with the 'goods'.
Now the best argument to counter the 'no more goals coming' is the management having so many shares. Mind you, they can indeed milk the company for a few years and still collect their 3.6 cents. So there is no scenario they do badly.
In any case, one can just wait. There are not many buyers ever above 4 cents. They would be the sad ones. Remember management themselves 14 months ago said 4 cents was a fair value for the company. If they actually believe their own words they should be buying back shares now. Or they should be showing holders how they have a plan for the future for growing the company. (I dont call building a10 year tailings pond a plan). If they are going to mine 50k a year for 10 years, then tell us HOW they will do that. And it needs to be more than 'spend all profits exploring'. Anyone can say and do that. Heck, I can get a tenement and say that.
(20min delay)
