or is this lifecycle of companies. So many people seem to see...

or is this lifecycle of companies. So many people seem to see the rise and fall of RAC as though this is the only company to ever experience this. But look around and it’s everywhere, and not just due to economic landscape from last few years but that has had a big impact across stocks as well.

those sin curve waves of price action people post for mining companies and market behaviour (depression v illation) IMO are just as reflective of general company lifecycle through concept, development, production/revenue generating, and share price correlations to these stages.

the initial large rise represents market gaining awareness of a company as its in concept discover mode and putting out lots of Ann’s about what they may achieve in future and progressing of plans for whatever their product is, including early testing or other initial proving up activities that give the market some confidence they may achieve what they are trying to do and the size of the potential future revenue/company value.

that’s where you get the initial fomo and excitement that pushing sps to highs.

next stage, If they have a complex product (mining, tech, bio etc) the company generally has to then go off and do all the boring stuff to plan for production. this would be where we’re at, though later stages right before the final pre production testing and ‘go live ‘ if you will. Company may still be progressing but unless they come up with a new product line or something to increase the potential value that market already expects, theres no ‘wow factor ‘ because market says we know what your doing and how much this will be worth so nothing new here and impatiently just wants everything done yesterday. So so falls to lows as people lose interest.

last rally will be the production ramp up / clinical trials nearing an end, and showing product works. So excitement for near term revenue comes back and draws people back in.

just my novice thoughts anyway, from looking around stocks across different indicators over last few years.