Haven’t posted here for a while but am still following MGT from afar (and HIO for that matter, to see how this ‘green steel’ sector all plays out). But to your comment
@Franciscus I think you have to be careful looking back at where the SP has been and using that to determine whether the current valuation is fair or not. 2022 is going to be nothing like the early euphoria of 2021, the macroeconomic environment has completely changed – there is no easy money anymore (and that goes for funding too). In MGT’s case the reason the SP has fallen so far is chiefly
because of the PFS itself, not in spite of it – almost everyone here now seems to acknowledge the PFS figures were rather underwhelming. Retail investors often fall prey to the thinking
“this is a great stock with a big future, only idiots would sell it here” – all the whilst the SP goes nowhere or, worse, backwards. Both carry a big opportunity cost. The market isn't always right, but it usually is. Funnily enough this morning I was looking over some 2021 favorites that went vertical, and the charts on all of them look like a pyramid – up to the moon, then eventually back down to earth (i.e. BRN, FFG, IOU, NVX, SPX, VR1 etc) . To be clear, I’m not suggesting to sell here – who knows where the SP might go in the short-to-mid-term – but just about every HC thread has people talking about “manipulation”, “capping” and so on. It even happens on companies I hold where the stock is making all time highs every other week – even then punters like to tell themselves it should be even higher than it is, and therefore someone is “holding it back”. Pretty crazy, but that’s what these forums seem to specialize in. I have to agree with
@amb005 – this is just the normal movements of the market. Better to understand/accept it, than hold onto theories about traders/institutions capping etc. Cheers
