The Problem-26 Nov 2019 07:36
Morning all,
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 vale 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 we obtain more stock to sell to the investor that keeps on pressing the Buy button and finds 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 your share 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 prospect and at this time no reason to worry.
I do not call my self a "ramper" for pointing out the bleedin-obvious.
But I do think this is a strong buy.
Your money, your choice.
Have a good day all