I find a lot of people getting caught up in the trend of the charts etc.
I suppose it depends on what your strategy is.
If you are trading short term then the chart would say the trend is down and there are other places to put your money that will perform better.
Alternatively, if you are investing in the FUNDEMENTALS of the company, this could be construed as a screaming buy.
Most valuations are conservatively valuing the SP at circa 80c.
We have had a variety of tid-bits of information come through, all positive news.
Some less valuable: photos of the operation ramping up etc. but not much more.
Some more valuable: product being pulled out of the ground is higher grade than expected, contracts paying more money than expected etc. therefore leading to more dollars in the pocket of the company.
I don't know what your strategy is. However my understanding of investing in stocks is you are investing in the company..
If you do the research and your research comes up that the share price reflects a value LOWER than the underlying value of the company, then you buy it, as the market will always bring the share price back to the value of the company it is reflecting. The only variable is time.
Any other strategy ie. looking at chart analysis alone is little better than playing the TAB - because at the end of the day, you are investing in a company. If the company is crap but the stock price is over-valued and going up, sure you may make some money short term, but long term you will lose.
The opposite is true here.
Strong company, oversold, undervalued, share price going south. You may lose some money short term, but for how long... If you buy at 45c, 40c, 35c, what difference will that make to you when it returns to highs of the 80c??
All in my opinion of course.
DYOR
Have a wonderful afternoon all.![]()
I find a lot of people getting caught up in the trend of the...
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