Investomania -on Sirius Minerals FB12 Jun 2018 14:22
Is Sirius Minerals more than just a gamble?
After all, there is not a particularly long list of FTSE 250 stocks that have risen by 50% since the start of 2018. And new investors may look at those gains and wonder if they could be able to generate similar returns in a short space of time.
In my view, Sirius Minerals offers investment appeal for the long run. But in the short run it is difficult to determine how it will perform. Even though I feel upbeat about the company’s prospects regarding the implementation of its strategy, investor sentiment is a difficult factor to accurately predict.
In the last few years there have been times when I felt that investors would become more positive about the company’s prospects. And there have been other times when I felt the opposite, perhaps due to a piece of news which was not particularly favourable for example.
However, on a number of occasions investors have not reacted how I expected, and this trend could continue in the short run.
In the long term, however, I feel optimistic about the chances of further gains for the Sirius Minerals share price. The company seems to be on the right track in areas such as financing, construction of its production facility and in its marketing efforts. This could lead to a gradual improvement in investor sentiment as production (and revenue) draws closer.
As a result, I feel that the stock is more than just a gamble. Although in the short term it could be volatile, in the coming years there could be scope for a significantly higher valuation. Within what I believe is an appealing FTSE 250, the stock continues to offer scope to beat the index
Sign In
Follow the stocks
