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Its clear we need the 100:1 consolidation soon, rather than later. I'm not normally a fan of consolidations as they are mainly done for the wrong reasons but in this case I feel it would be a game changer. The problem with companies in the billions of shares is they can easily be pushed around by bigger investors and I feel we are in this grip right now. I feel if the shares were cut down by 100:1 this would be harder to do and would actually reflect better the price of the company. If the news already received has little effect, I cant see the next 6 months making a difference. Whereas after a consolidation, which will drop the price overall for a short period, would respond better to any announcements. After the approval to consolidate was given recently at the AGM, I am surprised this hasn't happend sooner to be fair. Hopefully (cant believe Im saying this) a consolidation is coming real soon.
Consolidation of 100 to 1 is pre approved and the longer we stay at this level the quicker it will arrive. I hate consolidations but in this case it might be what this needs and stop the ridiculous buying and dumping we are going to suffer.
Happyhaddock - I take that point on board and understand this, however a large amount of money was raised from the last dilution to improve the chances of getting all the various sites to JV. The reason I would be fearful of the share currently is that no progress has been shown and energy should have been focused on this, which at the moment it feels like it has not. I'm not against more drilling etc, I'm against just going anywhere and it not be done constructively in tune with a business plan. I get that there are technicalities of mining which need due process but this does not stop you working on possibilities and lining things up. Did I say this company is a failure - NO. I said currently its in a stage of decline and best watched for a better time. That time should have been around now but I feel its still much further away and the dilution has done very little to help. Would it be a surprise if another dilution is around the corner - NO and this will lower the price again. Better to wait out the storm and watch out for the first signs of daylight. But at least your post is constructive and gives more information to the newer owners of mining shares. There is too much oooo it will double next week stuff on here currently.
@Nap - I don't think Jem is a shorter mate, more so someone not well versed with the sector :-)
And on this point, I've been or still are invested in many other Miner stocks, GGP, EUA, UFO, ARCM, ROCK, CEY. I'm no expert in the field but know what is required for a successful share not always following a good miner. There are lots of Mining stocks to be interested in and just because I'm a smaller trader with two pots of 20k each doesn't mean I haven't learnt how to make profit off these. So your assumption is as overblown as your confidence in this share by that statement.
@Dip66 -getting a JV in the first place whether good or bad is no easy task
True and this is what I thought was a strength of UFO and made it stand out from the others. Do I still think they could be good - yes, but until I see that proof my money won't be going back in without some business sense. Some of these new investors will believe the pot of gold rainbow crap that some spout on here and WOW that drill result was amazing we will be double by tomorrow stuff. All I want is for them to get a balanced reason for why this share is struggling at the MOMENT.
Saying you want UFO to secure a JV but don't want them to spend money on drilling is a somewhat oxymoronic statement as we'd end up selling up for pretty much what we bought licenses for if we've done noting to improve understanding of them in the mean time.
Why do they need to drill more ? They have done extensive drilling and results on current ground - so your arguement is null. And I do understand Junior Miners and how they work. There is a difference about finding ground and dilution to fund this and then there is a point to which you need to make it pay. UFO is not a start up company and stop treating like it is.
Sometimes its good to take what you call a bad deal on your first JV to prove a point and show your standard as such.
I was big on UFO at the beginning of the year. I liked the way the strike rate of finding ground was good BUT the important bit was the way it had got a JV going. The second part is as vital as the first and that's what makes a Mining share work. I got frustrated in the 1st quarter with lack of news on converting what is to believed as "extremely profitable mining ground" to a JV. Time went on and this looked less and less likely which I may add was the whole reason the massive dilution at the end of 2020 was for to speed up these sites and get them to JV land. The price was hurt really badly by that dilution yet I thought still worth it.
This for the new investors is why this share is the reality of it, don't believe the rainbow chasing rubbish pushed on a board. Had they got a new JV in the 1st half of 2021 your share would be looking great and on its way. But the lack of news over time worried me and I sold out. Did I not believe in the share anymore ? Well Yes and No, I believe Bill can find decent ground and get that side setup well. But this does NOT bring the share price up and with all the costs of drilling and wages that dilution money is starting to disappear. So I still believe in Bill and UFO to find the ground HOWEVER I don't believe in the business side of it where they have to convert these targets to raise money. Fortunately for me, the only JV they did have collapsed and the situation is now well worse. This share has potential because the land has potential but it will never convert that soon and hence I feel your going to get diluted again to raise yet more money for costs. Its sad to see some people not tackling this issue with UFO and would rather catch people out with promises of quick returns. The share is going to keep dropping until they get there act together and get a new JV. Maybe then will I look at this share again with renewed faith. They should be focused 100% on this and not more drills or new ground. Otherwise I feel the money will run out and the dilution will come again and I'm not sure it will survive another as the last one really hurt.
So new investors, I would suggest you have this one on watch and see if they can set the ship on course again. Don't believe it will rebound quick hype because it won't without the Income.
Exactly what I expected, to deramp would I hold £30k in shares to qualify. Well done on proving me right as I did not deramp it in any way but as a shareholder I think its fair to question things at times when answers are not given.
This board needs to cooldown from all the rubbish thrown around here by both ends. I'm close to 12 months of holding this share and even though I have faith in the company, the board have to start giving more or this share could collapse to the 10-20 range easily. The so called 'rampers' of the board always state everything in a positive way and I get it, but at the same time they contradict themselves by doing so. The reality is the AGM NEEDS to show something concrete not ifs, buts and maybes. Here is my reason why :
- The FSP process was started to originally sell the company, this process has been ongoing longer than most expected and with Covid around it was understandable. Promises of rainbows and sale every week with insane figures.
- Then the curveball arrived with the JV and Rosego, again good news but an unexpected direction. This started the whole already inflated ideas to even higher levels of crazy.
- Then the RNS arrives saying they are exiting the FSP and have 'one possible route'. Again not totally bad news and started to make the Rosego JV look like more sense.
- Then out of nowhere EGM arrives with an urgent need to raise funds and it couldn't wait for the AGM. £14 million raised for the use of Rosego. Again the picutre is looking clearer with the direction and again we wait for news.
If I use the 'logic' and not the complete rainbow theory, then the idea looked like we decided to create and agree to Rosego to give the company a future. On the other side, sell off the MT and maybe WK and this side will be sold off in a dividend fashion which is hinted at 'substantial dividend'. Again this all lines up and makes 100% sense, so all good. However, this is where the truth is about to come out because if there is no news of a sale in the AGM then it puts the whole BOD in a misleading light and you cant avoid you have been lied to in some way.
No AGM news means why have an EGM to raise money urgently if this could have been done in a smoother fashion in the AGM. So, have they lied about the carrot and in fact given us the stick by this action. If the FSP is done and over, they must have an offer on the table so why not come clean with who and what it is ? Is it not what they want or don't want to disappoint the shareholders. Also why has it taken so long to put the offer on the table, when they show how quickly they agreed the Rosego JV. That's just a few of the issues I can see if this AGM does not make the muddy water clearer because there aren't more options open with. I even know what some of the rainbow chasers will say, but as we say cats only have 9 lives, the BOD are running out of them and the more you over coat these things the more it makes you look like a crazy ramper.
I think there has been a lot of patience people here and yet it still feels like we are being left down the garden path to a pit and not the golden rainbow. However, I remain positive but realistic over this share so I hope this month comes
What is happening with this share is simple... too many shares floating around without anything of substance to stop it. Problems you get with these type of shares with too many floating around to buy is that its open to the buy low and sell at 10% profit and repeat. I've said in previous posts the only way you get out of this 1p will be a JV or actual money generating mining. UFO HAS great potential and sites etc that is not in doubt but the recent dilution has killed it dead with just too many shares to drag the price down then sell on these minor news items and keep doing it. This is easily a share you need to forget about for at least 12 months because your money is going to do nothing until these locations come to a money generation event. If you haven't got this mindset, leave now before you are frustrated constantly and looking for stupid reasons like mm games etc for a reason. You wont see this get close to 2p without this kind of news. So please quit the moaning about 'other' reasons as there is none and its getting boring.
Got a message through the broker that
"The Company on 19 March 2021 formally made the Cancellation Application to the
FCA and the cancellation is expected to take effect on 21 April 2021."
So the cogs begin to move and will await the next stage news
I actually think this will be lower at 0.8 - 0.9 in the next 4 weeks, so will wait then. Everyone gets too excited about announcements about drilling etc, if you have been in this market long enough only JV will give this a real solid boost or production from a JV.
I think everybody here understands what your are trying to say, it's just that most are trying to convey the fact that it is the mkt cap that drives the share price, not the share price that drives the mkt cap.
Ok fair enough maybe Im looking at it too deep.. but thanks :)
that a market cap could be not strong enough to cope with the amount of shares you have.
My point was that if you add more shares and your MCAP doesn't change then it wont cope with these and give us a lower share price which is currently what we have. The market thinks the MCAP is right with the current amount of shares or else people would value it more and it would move up.
The size of the pizza is the market cap though - correct
UFO is 39m currently.
The amount of slices = the amount of shares
3423m shares
SHARE PRICE = MCAP divided by the amount of SHARES
if your shares stay the same and the price goes up so does the MCAP
if you increase shares the value of your shares decrease.