RE: Holding23 Mar 2019 15:33
I reckon it is on peoples radar and on plenty of watch lists Lee. With restructuring being the main risk here some are probably waiting for clarity on it before entering - ofc they’l have to pay more, much more than current share price but just think where the share price might be in 6 months after a deal is reached.
Lets play out a scenario (scenario 1), first thing Monday morning we get a refinancing agreement sorted (a favourable one) - share price will open 100-200% up, those watching it will all be vying for shares which will push the share price higher some will be able to buy in, others wont (considering how very hard it is to buy in here on a normal day)
From where we currently stand even with a good agreement its hard to see the price rise past 2-3p soley on the agreement, so say those waiting on the sidelines buy in at 2p...look at what they’re getting, a proven resource and a management team looking at getting the mine up to nameplate design within a few months which would see the sp multiples of 2p - with litle to no risk.
Now us guys who are all holding decent amounts are carrying all the risks at this stage, because no matter what anyone says until an agreement is reached (which im 1000% confident on - reasons why i can post seperatly) theres still a risk until its in black and white.
Now some with decent holdings will start selling as soon as an agreement is reached, why? Because their portfolio has turned blue and they’re now up 100% on their investment - bad mistake whoever decides to do this. All your doing is carrying the risk now to make 100% only to pass your shares over to the 2p buyers who will hold for 6 months and sell at 10p a share (so you’ve carried all the risk, sold at 100% and the 2p buyers have bought in with no risk and made 3 or 4 times the money you did).
To my point Lee (haha sorry for going the long way round) - however crazy the above might sound, that will happen and the 2p buyers will arrive and still make multiples of their investment with little to no risk! So i dont blame them for holding out until the risk has passed.
Scenario 2 - those carrying the risks at these prices dont sell a dime, we get a positive agreement and buyers are queuing up for shares (which they are i can assure you), considering the small free float every other buy will see an increase in sp - we then get confirmation of nomad (not really news that would increase an sp) given our situation and the fact mm’s will try to rerate price at any given chance this will again see a big uplift in sp - we then get our quartely update, which shows same or better figures than the last one....you get my drift. Those with low averages like mine (around 0.70p now) will be trebling their holdings everytime a 2p buyer makes a bag.
Moral of the story - when the news comes and its good (we hope and we believe), dont sell and allow others to make more on your shares with no risk. Hold for gold. T
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