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In these sorts of situations its all about timing your averaging down - the main thing to remember is that you have much more time to consider your decision than you think.
The last time in happened to me I was 92% down - this was 18 months ago - I averaged down far to soon - although the SP recovered I am still about 30% down - if I had got the timing right I would have been in profit by now - patience is the key - its all a slow motion grind.
My opinion and it is only my opinion! This is going to bounce between 3 and 6p over the rest of this week. I don’t believe this is the end of the road by a long shot!
If I hadn’t run out of top-up funds, I would have topped up. Maybe that gambling gene is raising its head at last... !!! Am holding.
I’m holding. I am 50% down. They haven’t gone bust yet. As someone said on this earlier, investment is akin to gambling. And, unless I missed something, I haven’t seen them fold. They are still holding their cards. Just...
Its certainly worth holding - we could even be the subject of a takeover battle with several companies after the mine.
As for averaging down - certainly not yet until there is clarity - we could unfortunately take more steps down over the coming months - technically the SP has to rise to around 7p for the SP to be "safe" from further falls.
Best case scenario we find a strategic partner with the funding - we get more dilution - but the mine gets built.
No way will I sell now but I will wait for the best time to average down - now certainly isn't .
Milothe3rd, my decision, rightly or wrongly, was to buy at 4p yesterday because I still think a partner will step forward and take a share of the company for the 500million. Once JPM are clear of the project I am hoping that there will be an announcement about a partner and things will progress at speed again......maybe even before the project begins its slowdown for expenditure. I based my decision on the podcast.
With the £5k I still have, rather.
My view is 60% bail out because I can still do something tangible with the £15k I've lost, and 40% hold on as it's already so little vs where I started from I may as well see what happens.
So, sell it is. Just hoping it doesn't tank again by 50% this morning.
The question is, would you invest in SM now at 4p / share? i.e. holding to the shares (value drop is already in the past, the question is if it is worth holding).
What a strategic partner would bring? = answer is access to funding. IF the likes of BHP (whom can borrow at 3-4%) want a piece of the action, what form would that take? I guess they will say 50%-90% of the company for nothing in return for facilitating $3b borrowings.
If this is the case, say only 50% (optimistic, likely will be a lot higher), then we will end up with some 15 Mil shares. If so, is it still worth holding, or just cash in the miserable few pennies are in the pot now. Or there is a high risk of Nil left?
Any views? Casa?
M