The Problem:-10 Jul 2020 13:19
EUA is a hot stock at the moment with it being fully funded and actually stating it will not need to fundraise any time soon.
It has after all the lean years started to make some money and grow its self organically from production revenue, it has
from September cut out the middle man and expects to increase revenue in certain areas by between 65-70%,
The company is in a strong position and its product (PGM's) value has and is continuing to go through the roof.
I have not stated on any share price prediction, other than to state it will be many multiples from where we are currently at, it is obvious to anybody we are currently way undervalued and in the process of rerating.
The long term holders brought into this company seeing its future value as a good investment, and it has been a long road for them.
This company and its small previous Market Cap have allowed it to just trundle along below the Radar, its profit prospects were small.
well, things have very recently changed and the company's future profit outlook is trending up in a big way and it has just appeared above the Radar of a lot of investors Big and Small.
This share is now in high demand but there are only so many spare shares circulating.
The problem the Market Makers presently have is they don't like to hold much stock as they are risk-averse, so how do they obtain more stock to sell on to the investor that keeps on pressing the Buy button and finding it goes to NT.
Two options, they can raise the price and the 10-20% profit-takers willingly sell up, this can only work for a limited range as the price just cannot keep going up to free up stock as the stock then becomes over brought and deemed expensive.
The other option is to drop the price for a moment and scare holders into selling their shares if that fails they drop the price further to reach those Sell orders at a price that are sitting on their order book, ( the stop loss ) that the unsuspecting investor sets, thinking it will protect him or her (very wrong) this is AIM, not the Footsie. You are playing a game of poker with your opponent able to see your hand, not a chance for you to win.
If they force a drop and overdo it, you get a cascade effect as we have seen with everybody panicking and trying to sell out.
So Buy into your stock on its fundamentals, do not set a stop loss, do not panic sell, and hold for more than a few days, IE the longer term. This share has a fantastic longer-term outlook.
recent company quote:-''We believe this puts us in a completely different league to other Major Palladium companies. And we believe 15m oz of Palladium is just the beginning, we are looking at several other licenses adjacent that could take us to 40m oz Palladium. Having said that with 15m oz of Palladium, we believe we are very attractive to large strategic investors''
I do not call my self a "ramper" for pointing out the obvious plus points in holding this stock.
Please DYOR by reading up on the RNS's above
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