I think there's a massive pump coming & this could be my chance to exit.
What's the pump going to be? I think it'll be the assays from the drill campaign below.
MORELLA CORPORATION LIMITED (ASX:1MC) - Ann: Drilling commences at Tabba Tabba East Lithium Project, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading ForumLook at what the neighbours have.
WILDCAT RESOURCES LIMITED (ASX:WC8) - Ann: Luke Discovery Returns High Grade Results, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading ForumThe company is undergoing a consolidation with obviously more dilution coming, so the initial investment from any shareholder will be wiped out. Unless of course, you continue to support the company through continued CRs or buying more shares on market in the future. 1MC is also undertaking an unmarketable sale program. So, ask yourself this question.
Who's buying the shares? If your shares are being sold & you're receiving cash, then someone has to buy them.
The shares don't just disappear into the ether. So "someone" is purchasing these worthless shares &
might want to offload them again at some point to get their money back.
How are they going to offload them?
They need a pump. That's where great assays from the Tabba Tabba drilling campaign will come into play. I think 1MC has been purposefully waiting for this campaign for some time for this exact reason. It will kill two birds with one stone. It gives any entity a chance to offload the worthless shares they bought under the unmarketable sale program & 1MC can raise more cash at a higher SP, so it doesn't dilute current shareholders too much after the consolidation.
MORELLA CORPORATION LIMITED (ASX:1MC) - Ann: Consolidation of Shares & Unmarketable Parcel Share Sale, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading ForumI plan to buy more shares soon to bring my buy average down closer to the current SP. Then, after the consolidation, the less SOI means the SP can run hard & fast in
BOTH directions.
How big is the pump going to be? Who knows, it will depend on the hype. It might not get close to my new buy average which means I'll be selling at a loss, but I won't lose as much if I sell now.
Will there be a pump? Who knows,
it's just speculation on my behalf but it's what I've witnessed with some other companies that have undertaken a sale of unmarketable shares program.
What's the risk? Nothing happens, the drill bit finds dust & there is no pump. I've sunk more money into a stock that could be doing nothing for years to come, eventually ending up with billions of SOI again & then another consolidation, further wiping out my initial investment. But, I never invest more than what I can afford to lose.
Hopefully, they do another raise soon at a higher SP (after the pump/consolidation) & sell some coal assets along the way, so the amount of SOI stays relatively low for a few years to come. If 1MC undertakes more drill campaigns in the future I've got another chance to exit on great drill results. Perhaps the lithium price will recover soon & investor sentiment will improve, revitalising the entire lithium sector on the ASX, hopefully benefiting 1MC along the way. A rising tide lifts all boats, as the saying goes.
MORELLA CORPORATION LIMITED (ASX:1MC) - Ann: Morella Annual Report to shareholders, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading ForumI think this is a great investment for any 18 year old starting out in the lithium sector, you could be buying in on the ground floor, but given the current state of the lithium market & the speed at which management operates, these guys might be 20+ years away from any production and
I could be dead before then.
If I can get out with a small loss or break even, I'll be delighted.
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