The current share price is just a figment of the market's imagination. It is not in any way shape or form real, so there's no point worrying about it. When you think the market has it wrong that's when you buy or sell. That's when you make a profit (if you are right).
Let's be very clear here. The share price is only real when one of two things happens:
1. The company starts producing so there is a value based on net income
2. The company sells something so there is a value based on the "real" value of the asset.
Everything else is just guessing and supposition. Even when we get great grades, or prove the resource is x million ounces or whatever, it's all just guessing until the money starts flowing.
Think of it this way. It's like baking a cake. The flour doesn't taste so great. The raw eggs don't taste so great. Even when all the ingredients are combined it doesn't taste so great. Even when it's half cooked it doesn't taste so great. It's not until the very end that it all comes together and you get to enjoy your cake.
So it's agreed. We're eating cake at the 10 cent party. My shout
BSR Price at posting:
2.9¢ Sentiment: Hold Disclosure: Held
