There's been a lot of controversy regarding the consolidation. Let's take a step back, analyse the company & see if we can make some sense of it.
Personally, when i buy stock, i look at the investment as if i was buying a small business(being a small business owner myself). First thing i do is SWOT analysis.
Here's what i came up for RED, feel free to add in your points as im sure ive missed a few...
Strengths:
- No debt
- well funded
- strong resource levels
- shift from explorer to producer
- good institutional backing
- high margins/low cost producer
- positive outlook for gold price
Weaknesses:
- No cashflow yet
- No production
Opportunities:
- Further exploration upside
- potentially strong cashflow
- leading to possible TO of junior explorers
- or dividends(unlikely)
Threats:
-Political upheavel/terrosist threat(unlikely)
- plant & equip. breakdown etc
- gold price crashing(unlikely)
I think when you look at the fundamentals of RED5, theres no question that it is a company with a strong foundation. The outlook is positive be it at 20c or $2 (post/pre consolidation). I think if you have a ST view on Red, theres plenty of opportunity for you to sell at a profit leading up to production, and if you have a LT view on Red then the only way we are going to see the true value of RED5 lets say 30cents+ ($3+) then we will will need more institutions on the band wagon to take the price there.
I think there will be a lot of ups & downs in the next 3months or so, providing opportunities for the day traders and ST holder to make a quick profit, as for the LT holders, i think you will be rewarded handsomely once the next batch of investors are onboard.
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Last
35.0¢ |
Change
-0.025(6.67%) |
Mkt cap ! $2.380B |
Open | High | Low | Value | Volume |
36.0¢ | 36.0¢ | 34.5¢ | $10.28M | 29.33M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 50000 | 35.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
35.5¢ | 235887 | 8 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 50000 | 0.350 |
23 | 716267 | 0.345 |
18 | 1584658 | 0.340 |
12 | 986095 | 0.335 |
17 | 456159 | 0.330 |
Price($) | Vol. | No. |
---|---|---|
0.355 | 235887 | 8 |
0.360 | 725304 | 26 |
0.365 | 331898 | 8 |
0.370 | 4959 | 1 |
0.375 | 269000 | 4 |
Last trade - 16.10pm 07/11/2024 (20 minute delay) ? |
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