SBM 0.00% 21.0¢ st barbara limited

G'day Lakshmi.There are many reasons why one stock is priced...

  1. 8,208 Posts.
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    G'day Lakshmi.
    There are many reasons why one stock is priced differently to another.
    With SBM and RMS I have no idea because I know nothing about RMS.
    However, I would suggest that investors have their own reasons which could be things like faith in management, the future prospects for the two companies as far as mine life is concerned and most important of all profitability or the chances of future profitability.
    If a company is digging gold and losing money it would be better off with it's capital in the bank. It is no good costing you $1,100 to dig it and only get $1,090 for it.
    As far as management is concerned, SBM have a new main man but most people will want to see how he travels first before committing money to shares.
    Another consideration is the number of shares on offer as SBM has seen a fair amount of dilution of late.
    Again I have no knowledge about RMS and these are just a few possible suggestions to try to answer some of the questions in your mind.
    I have no axe to grind with SBM as I have only owned them once and I made good money but I do follow them on HC as an interest.
    I do however have trouble believing that they will make any strong gains in the near future unless the new man really makes a huge difference or we get a huge increase in the POG.
    Even if there is a big increase in the POG you would still have to say that costs have got to come down dramatically or shareholders would still be better off in a stock that will make even more money from the high gold prices.
    The risk is that we will not get the high gold prices so what happens then??
    Good luck to holders.

    Kind regards

    Lockitt
 
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