Hi Maxedoubt. Firstly I will apologise if my post offended it was one of general frustration and i fully understand how some longer term holders of PNO may feel.
If you are prepared to be bored please keep reading on for my rant....
I am by no means an expert on the sharemarket or financial operations of public listed companies, I can only comment on observations from my time in the market, by in large the specualtive end of town in the small and micro caps.
The primary objective of theses vehicles is build a business around a central golden egg, imo. Be it a large resource find, a new techology, new drug or vehicle or something that will separate them from the crowd.By the pure nature of many of these running at loses and requiring to continually raise money it is a highly speculative and risky investment, imo, but the potential rewards will outweigh any other investment vehicle available. Imo you must invest accordingly and monitor the progress very closely. MD's and CEO's generally, and I use this term loosely, want to see their coy's prosper, more so than me or you, as they usually have more skin than anyone in the game, plus if there are oppies available these can generate a large amount of money for the company if they come in the money, but more often than not tends to be a hinderance, if no other reason than pure jealousy. It is these sentiments that run the market and the smart money use our emotions to plan their entries and exits from a stock.
I see that you were posting earlier in 2011 on PNO when it was over 1.5c and there was talk of heading to 3c! If one is in front at this stage it is probably a time to take some profits, or at least if you then edge into the red to make a decision. These are the types of times that the SM use to dump there holdings, when euphoria is high and the SP is rising. The SM mostly only sell on up days.
The SM will use the periods before a major announcement to accumulate then create hype to sell into. Be it an impending DFS or Mining Permit or Nasdaq listing or JV deadline or new drug discovery etc etc. It is up to us to decide what to do when the discovery/deadline isn't met. Holding for the longer term in spec stocks would require some knowledge that many of us would not be privvy too, imo.
I am generally ruthless with my spec investments and incorporate a stop loss. I am not a trader but if a stock is working against you or you got in at the wrong time, as they mostly work on cycles, it is best to cut your losses and move on.The SM run these companies more than the actual boards, imo. Yes it may mean you miss those company making decisions that this end can have but this will be on the rare occaision imo, and our hope is the very reason the SM is able to manipulate the SP. WE hold to the very death and it is usually at this time the cycle starts again. I generally have only small punts and am quick to exit if announcements are not uo to my liking.
PNO may very well one day discover Trip. It may not.I didn't invest on this possibility alone.Some great milestones are being reached by the company, I see it as positive atm.I took a large risk but invested accordingly I beleive the board would think it possible but concievably it has been the golden egg that has been dangled to the investment community. Just like a WHN may be courting a JV or POK is getting a Fed permit or LYC is getting a TOL. Who knows these all may be right, but who knows when. Every coy has a story to tell, one that they genuinely believe but more often than not one that cannot be delivered on time. They have to sell themselves though as how else are going to raise the money required?
Having said that my only buy and hold to date is the only one to reap me a five bagger.It did require me to sell when I went into red and buy back in way further down the cycle.It all depends on what you expect to happen when you invest. If you want buy and hold expect some wild swings, imo.
It is my opinion that we have nobody to blame but OURSELVES when we invest in spec stocks as we can easily decide whether to stick it out or leave, problem is we decide way too late that things aren't going to plan and this is generally when anger turns to management,imo. I admit it can be very hard to decide when things are going to turn sour as it usually immediately after times of immense excitement. Many a coy I don't hold anymore I still have high hopes for them long term and will just keep an eye out for good times to return. I read somewhere on HC, a place where I have been able to stumble on some VERY good info and learnt a great deal from, amongst the sea of fun and banter, that 70% of a stocks SP is due to the general market so at the very least lets hope the market can turn around this year.
Cheers for that and good luck holders, Doogs.
CAI Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
(20min delay)