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Tray, anybody that bought in 2019 and sold in 2021 made a tidy sum, I’ve aways believed in never be afraid to take a profit. That to me is what playing the aim is. As you said lots of people invested in the hype and caught the falling knife. You have a good insight and patience into what Sean is doing.
It’s the waiting game that investors get fed up with.
So hopefully you are correct and all will come good and return to what it was in 2021 after consolidation 30p. For you and all hopefully it will.
I don't invest in the junior exploration space in general. I don't believe the odds are anywhere near worth investing in 99.9% of plays out there.
Never invested in Sula Gold etc. Had a small position when PJ took the helm in POW as I liked his CV to date and financial background and his ability to stretch POW's limited working capital on acquiring many projects on the cheap (Pilot Mountain, Athabasca licences etc. for starters) whilst nobody wanted them.
Since Sean took the helm I have increased my position by around 500% in POW. I like that Sean is looking to spread the chips across multiple plays whilst retaining a large enough holding in each venture in order to benefit down the line. Sean is clearly building on the start PJ gave POW. Hopefully we see those building blocks start to grow shortly with talks on these U asset deals, Saudi IPO etc.
No one in their right mind would walk into Caesars Palace in Vegas and bang all their chips on number 28 of the roulette wheel. Well that's your standard Junior exploration company which so many clueless AIM investors walk into on a daily basis and wonder why the walk away with no returns. POW are spreading their chips across multiple numbers of the roulette table. Yes, the rewards will be lower but still substantial but at least you aren't going home in tears due to dilution, failures etc after a short period of time.
If you have a £15mil balance sheet and the business is telling you in its latest RNS releases that they are working on some U deals with deep pockets, the biggest IPO to date is coming via the Saudi RNS etc. yet the market values you at £13mil, then for me it's shouting BUY. Yes the SP is supressed, but that's Mr Market currently. When Mr Market acts this irrationally you buy, when it acts irrationally and overshoots the other way in terms of valuations in this space you sell. Unfortunately, most AIM investors do that opposite.
The market will eventually react, I've just made sure I'm in before it does and that's all you can do as an investor.
Tray, out of interest did you invest when pow was Sula gold, then African battery metals? Course they both failed. Pow carried on as an explorer nothing became of that so(I’ve an idea PJ thought)let’s have some IPO’s that never worked as well as he hoped.
Mr market doesn’t like pow because they haven’t found a thing to dig up and sell. If by chance they found a shed load of gold, nickel, or silver maybe some uranium in the moose patch then Mr market would love them. Of course only my view, you might see the company in a different light. In hope we wait.
Agree sol001. I get you are frustrated and fully have the right to voice your opinions.
All am I trying to say with my comments is that its all to do with Mr Market and nothing to with POW at present for the facts I state on here each week in terms of what POW currently hold.
POW are adding value slowly, the market just isn't pricing that value in. Yes its frustrating, but for those who haven't overleveraged themselves, its the best buy opportunity I have seen here in the history of Power Metal Resources (since circa 2019) in my view.
Should have added find before tangible
For this SP to move they need a tangible asset,
Then production and sales. This will create interest and more investment, volume of sales go up.
Investors make money. Course some will sell at different levels, all about how much profit you’re happy with. At the moment though it’s not happening so naturally people are getting fed up.
Good luck all
Justlook I'm just writing my frustration. I can be as negative or positive as I feel like. I don't have to sell because I'm not happy with the sp. We all have our freedom to to write our thoughts here. If you're not happy with what I write keep it to yourself. Have a good weekend all and here's a better week next ;-)
Sol - we all agree that the SP should be way higher , as TRAy pointed out if it was all Under one company there would be mass dilution.
If you don’t understand the model just say and it will be explained .
Alternatively you are not happy with the situation , either sell or be more positive . No point in being negative
Great things are happening here .
If everything was kept under POW you would be diluted to death if you wanted any progress!! You are judging the POW model based on the SP performance in a poor market which is affecting all junior exploration companies pretty much. I don't make my opinions on POW based on its short/medium term SP performance. I only use the SP as metric when I'm buying or selling. And the SP today screams buy. I view POW on the value it is adding to its balance sheet as that's what ultimately this model is all about.
I'm not happy with the SP, far from it! I'm sure every single POW shareholder out there is unhappy. I'm pretty sure Sean Wade is banging his head against his desk on a daily basis too. But the drop in SP here is totally illogical based on the facts I put on here on a weekly basis in terms of what POW hold in their portfolio.
But is that a reason to sell? Absolutely not, it's the reason I'm continuing to hoover up as many POW shares as I can. The markets are inefficient in their nature. They will turn at some point and when you have a balance sheet that's larger than your market cap, then those types of companies will be in the driving seat when the winds from Mr Market change.
FYI - Not on commission, all I do is state hard facts and throw a few of my opinions into the mix along the way. If you think it all sounds too positive then I apologise. It's Mr Market that is holding this SP back, not the poor actions from POW.
Have a good extended bank holiday weekend all! Hopefully some positive news next week from the ongoing U asset deals and Saudi pre-IPO!
If everything was kept under pow. Our sp would be up, pow would still be making money and we would be happier as pow shareholders. Yes pow is making money, but the shareholders are at a loss. Are you on commission Tray? If not you can't be very happy where the sp is either
The SP is worse, the business isn't. Management continue to push forward with the business plan albeit much slower than anticipated due to poor sector and market conditions. Those with deeper pockets have started to come on board (Rick Rule, Purebond, Saudis etc.).
Therefore if you liked it when POW was valued at £30mil in 2021 when everyone was piling in, then why would you not like it today when its valued at £14mil by the market and POW have a balance sheet that's greater than their market cap?
GMET warrants getting converted and some are selling POW to pay for it hence why the SP goes does down in POW in the short term. The investment case hasn't changed.
Luckily it's a bank holiday on Monday; this sp is really depressing to watch. We are even worse today :-( Hopefully pow releases some news really soon that will help bring us back to the levels before pj left. Sean is doing his best and I'm hoping he has something in the works to help encourage more investors to pow/powmf. Most of us here are long-term, loyal investors to pow and they really need to do something, before we lose confidence in the company. It's all good on paper, but we aren't on pow pay cheques or receiving dividends. I wish I was as positive as Tray, but every day is more and more losses. I'm holding here as usual, but I don't have a choice :-/
I did make the mistake of buying in with JP hype.
Fortunately Tray, before the SP hit rock bottom I sold at 2p made the lose back on the few bounces there’s been. Depends on how much patience one has for a company where the SP doesn’t move, investors want profit. Hopefully what I still have in this company will return me a profit.
That's my point PowerfulPete, it didn't start off at 3p. You bought in at 3p (now 60p post consolidation) at a time the business could prove almost nothing of that valuation. It was at 3p because of pure hype. 12 months before the hype, you could pick POW up in late 2019 for about 0.5p a share. The business didn't create 6x the tangible value that it had in 2019. It moved x6 on covid liquidity and hype and unfortunately you bought in at the peak hype period by the sounds of it.
Now the business is valued at 13p (0.65p pre-consolidation) and can prove every penny of its valuation and more. But for some bizarre reason, AIM investors don't fancy it, but they will sound enough so I'm positioning before they do.
You bought at the wrong time if you were picking POW up at 3p in 2021, you cannot blame POW for that! You make you profits by investing in POW at these current levels when nothing is priced in. Not at points where the company's market value is a million miles higher than what it can prove on paper.
Good luck too.
Tray, I admire your faith in the company and you write good reasons why it’s a good investment. But what people want is a profit, a lot of people day trade these aim stocks. This company doesn’t even move 10% -20% no money to be made. Started off 3years ago at 3p since then down it’s gone, lots of people caught the falling knife. We’ve had dead cat bounces and that’s it.
Good luck
I think most of us here on the chat are long term investors. Here's hoping by the summer or later in the year you are right doc and we are alot more above 13.00. I think news from the Uranium; especially if it's a JV, will give us the boost we need. Molopo; let's hope the assay results are above our expectations. I think where the sp is right now, a poor result is already built in. I can't see too much of a drop from that
Doc83 - Beat me to the inefficient market point!
Not bothered about short/medium SP swings as the market place is inefficient in its nature. If SPs moved up with every piece of good news and down with every piece of bad news, no one would invest in anything. You make you money in the stock market when it acts the most inefficiently in my opinion on both sides of the spectrum. Buy when its obviously undervalued, sell when its obviously overvalued.
I look at the SP solely on a "what can the business prove" basis. At the minute at 13.25p a share in POW that's a £14.6mil market cap. Theoretically if a liquidator came in tomorrow, they would have very little problem getting £14.6mil into a bin bag of cash. Therefore I'm a buyer of a stock in this position.
On the other hand, take 2021, the POW market cap spent a good chunk of time above £30mil but a liquidator would have had a tough task getting even £3mil into a bin bag of cash at any point in 2021. AIM loved it, the PR companies pumped it and investors got suckered in with their covid money in their bank accounts.
U asset deal talks are happening, a Saudi IPO is in the pipeline and POW's 75% stake in GSAe Ltd will bring in a bit of revenue (they made about £200k profit in the last 6 months of reported accounting data so circa £400k profit per year) .... none of this is priced in, not even a single penny. So if it all fails, no money goes into the theoretical bin bag of cash anyways so I'm no worse off. If any positives come from these projects, then the bin bag of cash will increase.
AIM retail only understand "the SP has gone up so the business is good, the SP has gone down the business is bad". Huge opportunity here to get POW at a remarkably cheap price, but that's only my opinion based on my own logic which has served me genuinely well so far over the past 10 years+.
Markets are inefficient. That's why we're here, to spot if something isn't priced correctly and make money out of it. I have high hopes that "this time next year Rodney" we'll be trading higher than 13p.
You are correct to say that POW’s business model tends not to be well liked in the UK because as we can observe the value of the investments is not properly reflected in the share price. However I believe the reason they have persevered is because it is quite common and well liked in North America. I have certainly heard Rick Rule and others say how attracted they are to this model because it spreads risk across multiple targets and has proved to be very profitable selling prospects on to bigger miners to spend the big money on development. As we know Rick Rule holds over 4% of POW and promotes it to US investors. Both POW and GMET have listings in the US and are having a big push on promotion to US Investors. If it works for Rick Rule I am happy to run with it.
As you said, if they were to sell up everything, they would be worth alot. Even the land alone is worth looking at. The investors don't really look into that though. I would love for Sean to keep the Uranium under pow as I said before. This project could be huge and would impact the sp and bring in alot more big investors to pow If they kept it under pow. Putting the whole project into 1 with a JV to cover costs would be the perfect move rather than a spin off that will have little or no impact on the sp here. A spin off is only going to force selling here to move over to the ipo which is the case you mentioned with gmet at the moment. If they don't get something in place under the POW we aren't going anywhere. Ever since the poor result at molopo and pj leaving his position as ceo. The sp hasn't gone back to its previous position under Sean yet!!
That's the million dollar question sol001 and arguably AIM isn't a good market at all to have a model like this because the average retail investor lives in a dreamland where they want 20-30x return on their investments in a matter of months because they see it happen on a couple of stocks once every 10 years. Most with deep pockets avoid AIM like the plague and rightly so.
Based on POW's listed investments, pre-IPO investments, cash in the bank etc. I put that at around £15mil today. Now JP2000 has indicted below that Molopo, Haneti, Tati etc. are worth "diddly squat" at the minute. Well I couldn't really care less if that is correct or not because the market is also saying at the minute they are worth diddly squat so they are in for free if you invest today. It's hard to put a value on them, but are they totally worthless? Package them all up in another AIM listed company and that AIM co could easily have a £5mil market cap most likely. Therefore by investing now, I am buying in at a price where if POW theoretically decided tomorrow they wanted to sell everything, they would have at least that £15mil market cap in a bin bag of cash (I stress the word theoretically)! Its almost a win/win in this situation when you have a solid £15mil balance sheet as you are investing at the minute in a business that the market say has no potential. POW have had their issues with a lot of their assets but I think there is some solid potential re their Uranium assets & Saudi IPO alone. Progress in both those areas also has £0 priced in.
Selling pressure at the moment is mainly coming from POW holders selling POW stock in order to convert GMET warrants. Again, that isn't hurting the POW investment case yet the POW shares get cheaper by the day because of it. Another buy indicator in my books.
POW hold 55% in GMET (will be around 50% once the GMET 10.75p warrants are converted). GMET therefore holds all the risk. POW holds very minimal risk and gets the cash free ride whilst getting half the rewards as well. My personal preference.
When you invest in a business that has nothing to show for its market cap apart from pure hype, AIM herd followers etc. then you know its going to end in tears most likely. Exactly what happened to most junior exploration companies in the covid years. Not currently the case with POW.
Bottom line here, if GMET has doubled but POW hasn't moved. All that does is strengthen the POW investment case for me. But that's only my logical view. AIM is anything but logical as we are experiencing across the board at the minute. That for me also has little to do with POW and more to do with Mr Market which is unfortunately out of everyone's hands.
The biggest worry for me here currently is that if POW can easily demonstrated in theory that they can put their entire market cap in a bin bag of cash tomorrow, I'm sure it must be coming up on a few radars for a potential cheap buyout offer.
Why is it that the sp has doubled at gmet and pow share price has dropped. I would be happy if the share price here doubled at the same time. We have a large percentage here and news flow hasn't impacted us. Yes the company is showing they are making money, but we the share holders are losing money at pow. When are these ipos going to make us money at pow shares? That's my question to Sean. I don't see the impact from any of these ipos released yet
I understand the importance of the Uranium for definite. This is why I want it kept under pow or as a JV. This will help us as pow shareholders. We need more investors coming into pow
I think you are underestimating the importance that will be placed on Uranium prospects in the USA. The Senate has voted to ban uranium from Russia and it’s gone to Biden for approval. Uranium in Nevada will become of Stategic importance to the USA and may well be eligible for Government funding in the same way that GMET is hoping to get Government funding for its Pilot Mountain Tungsten project.