Still learningabout investment and trading and how they can both be combined as well as back testing various large brokerages advice from fundamentals and technical.
Used to have atrading mindset but have evolved more into investing mindset although trading experiencedoes help with timing when to enter an investment and assessing market sentiment.
It is surprisinghow short term fluctuations can move against outstanding fundamentals.
For example:
Stone horseenergy last year rewarded patience by having a 1100% increase in revenue andaround 1900 % increase in profit.
The revenue iscurrently 74% of its market cap.
Its gross profitis 54% of its market cap, and over11 times ( i.e.1100%) its enterprise value.. That is gross profit! Not revenue.
Stone horse energy also has an additional 10 million in assets.These areprobably the most extreme fundamental metrics on the ASX currently, yet theprice has until recently gone down.
So to cap a small cap printing money and growing, a boring –unexciting company plain and simple.
The marketsentiment is zero.
GRR had asimilar setup and it was possible to profit 250% within 7 months.
Fundamental metrics at share price of of 0.014 1 Share price 0.014 2 #SHEshares 684,460,000 3 Market capitilazation 9,582,440 4 Cash (sept-2022) 9,134,999 5 rev qtr 1,051,000 6 rev october(1/3rd of qtr) 350,333 7 tradable seciurities 675,000 8 Cash+tradable securities + Oct cash 10,510,666 9 Basic enterprise value 447,441 10 liqued assets enterprise value -928,226
RATIOS Value/ Market cap value / Enterpise value 1 Revenue 2021/2022 7,748,220 81% 1731.7% 2 Profit before tax 2021/2022 5,134,480 54% 1147.5% 3 Gross profit 2021/2022 7,043,330 74% 1574.1% 4 Wells valuation guess 10,000,000 ` 5 Wells + 'Cash_Equivalents' 20,510,666 6 (Wells+'Cash Equivalents' )/ MCap 2.1
Destpite a 2000% increase in profit ,more cash than market cap and plans to grow,the price went down.
Short term volatility overrode long term growth.. has any one managed to predict the short term volatility direction.
