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Hello Paul, welcome. To answer your questions:
1) Trolls. Many (including myself) discovered this share back in the autumn of 2020 and are currently underwater. However, the fact is, the money is in the ground so the price is cheaper than the fundamentals and it is sentiment dragging things down.
2) I have no guesstimate or expectation. Things are moving in fast, and somewhat confusing, directions. The consensus opinion seems to be circa £1-£1.50 per share. I think this is a sensible price to pin hopes to; anything above is a bonus that way.
3) Yes. If you believe in the fundamentals of the company and that the board of directors can find enough picks 'n' shovels to dig the goodies up!
4) Sentiment. The FSP has been going on for a long while and, due to the nature of such situations, the BOD cannot send an RNS every inch of the way. This makes people nervous. There is an opportunity cost to invest in a share that trades sideways but it is a risk to trade in and out of it as just one RNS changes everything. This is a low volume cost so it doesn't take a lot of trading to shift things in either direction, so it is popular for people who swing trade.
5) It has been "imminent" since I joined in October. If I'd known then what I know now, I'd have waited (opportunity cost) but we'd all be billionaires if we could trade with hindsight. My suggestion would be not to invest anything that you might want to use again soon. Also, if the FSP does not go ahead, the price will fall for a period.
The board is a great knowledgebase, alas you have to filter the morons. Expect a lot of green boxes in your feed. There are some good people on Twitter, too. Hashtag EUA over there and read some quality research.
Good luck!
...it is far better for a share price to rise slow and steady, with consolidation, than to rapidly shoot up to crazy heights only to fall just as far and fast. Although it is exciting to see a massive overnight gain, it is rarely sustainable and, in the long run, causes a lot more pain.
The lack of volatility actually bodes well, on the medium-to-long term, as we await either results or "the" RNS, as it means that those that remain in the game might be slightly more serious investors less likely to buy and sell on a whim.
Now back to the side-lines to watch the rather baffling fighting and insults. Some need to learn how to use that rather useful Filter function; might save a few early heart attacks.
...as I am bullish on this stock, but just want to prepare some for possible pull-back when limit orders are hit.
My predictions aren't worth a lot, but this share tends not to behave logically as it is traded so much. Monday could see a big sell-off by those that bought in at higher prices looking to take a few pence per share profit. Not everyone is aware of the FSP and I suspect that others are fed up with the wait and uncertainty and will be happy to pull out (*ahem*) as soon as they see some blue.
So, it could shoot up first thing, take a tumble, consolidate, find some support and then rise up nicely from there.
In other words, if someone reading this is relatively new to the game or doesn't quite understand the liquidity needed, don't panic if the SP does something you're not expecting. It is a volatile stock in a volatile segment of a volatile market, so it might misbehave a bit.
I am hoping, however, that there are enough knowledgeable people out there (as the news seems to rarely cover EUA) who understand the magnitude of the RNS and pile-in to hold accordingly. With a strong tide, we may not even notice the limit sells as the influx of orders come flooding in.
On another note, what I like most about the recent RNS is how much it de-risks the stock. Yes, if a no-sale RNS does pop up, SP will be hit, but that should be from a higher high and with more prospects than before.
Enjoy the rest of your Sunday. I'm not an early bird so will miss all the a.m. action!
...to see how people on this message board would speak to eachother if they were in the same room without the anonymity of a message board. I can't be alone is reading some of these posts in utter bewilderment.
It is amazing what the fog of the markets combined with people's finances being on the line does to common decency.
Remember folks, markets don't behave rationally. The reason being is that people invest in them and people don't behave rationally. It's no-one's fault, it just is what it is. No amount of berating, complaining, gloating, ramping or de-ramping is going to change the SP right now or in the future. It's not going to change the outcome of any eventual sale. Every person on here has a valid opinion, whether or not it aligns with your own.
We're all on the same team here. We all want great results. We all want to win.
Peace.
Gareth, that is a lot of money to potentially have held up for months (if the sale goes through) or years (if it does not).
No-one can tell you what to do and you do need to do your due diligence. I am heavily invested in this share at a high average price (I am currently underwater). I am bullish on the stock but anticipated a sale earlier so there is an opportunity cost that I now bear as I have missed other opportunities. Alas, my timing in the market is not good enough to buy and sell back into the same stock so I tend to buy and hold until all comes good.
Would I do it again? Ask me if and when it sells! I have confidence at what is in the ground - that cannot change - but sentiment is very important to share prices and the lack of news / communication from EUA (with good reason) has not helped that sentiment, as a quick peruse of the puerile bickering on this board is a testament to.
Remember, there are a lot of opportunities in the markets. Don't forget the US markets, which are generally a bit more bullish and forward thinking. Find an area of the markets you find interesting (for me, it is tech) so that you are happy to be researching for hours daily. I literally spend about eight hours a day researching, not something I was doing six months ago.
Also, you need to determine whether you are an investor or a trader. Investors do so based on the fundamentals of a company and are happy, willing and able to sit and hold for very long periods of time. Traders do so based on fundamentals, but also sentiment, social arb, patterns, charts and so on. Typically positions are held anything from minutes to weeks, perhaps months.
There is more psychology involved in both the markets and the investor/trader than you might initially think. It takes a lot to see your portfolio get hammered and not to run for the hills (fight or flight, in stocks, we cannot fight so the tendency is to bail) but hopefully you end up with more green days than red.
Best to you and try not to chuck money around randomly! Been there, done that, wearing the t-shirt.
...the fact that this has leapt up today will bring in a lot of new investors, which should help to stabilise the share price at a slightly higher level, IF this rise is not of the significance we all hope it is!
I know to many this post will come under the Grandma Sucking Eggs category, but there seems to be some concern by others regarding hedge funds opening up short positions, as though this acts as commentary on the company.
Of course, sometimes, short positions can be just that - sentiment. But a lot of hedge funds have rules that they have to follow, often bound by laws concerning the fact that they are looking after people's money. They have fiduciary duty to shareholders/investors and have to hedge - which often involves shorting - to protect larger positions. This would be especially pertinent in a volatile marketplace or sector, such as AIM/mining.
So, even if they believe it as a slam dunk, they would still build up something like a 70-30 long-short position.
Regarding market manipulation, this does exist. I know some are dubious of this phenomenon but there are plenty of books out there written by whistle blowers that confirm not only the exitance of it, but the common usage of it. As the Gamestop phenomenon has highlighted, the game is stacked heavily in the favour of the big boys with the private investor (especially those of the "paper-handed" variety) being a cash cow for them.
I hope this puts some people's minds at ease. It is not meant to ramp or de-ramp - as per usual, DYOR - but use it to assist the mental arsenal that shares like this force us to enact.
As an FYI, I am heavily invested in EUA (far too large a portion of my portfolio) and am not one that got in early so have many percentage points down. It hurts but, sale or no sale, unless the world suddenly decides to replace all precious metals with plasticine, it will come good. One day!
I received that as well, but I don't think it is EUA specific. It is on their website https://www.hl.co.uk/news/articles/investment-risk-how-risky-is-your-portfolio
Explaining why shares were exercised and sold. No panic necessary :-)
https://www.youtube.com/watch?v=e1A4h19LMco
If link doesn't display correctly, just search for Argo CEO on YouTube.
I didn't find EUA until October and bought throughout Oct/Nov/Dec making my average about 37p (*ouch!*) so am well under. Not grumbling, I understand it is the nature of the beast and I bought knowing the risks. Especially in AIM! Must admit, I have been nervous of late as EUA represents 100% of my losses across all of my accounts. I am somewhat heavily weighted toward it. REALLY hoping that this isn't a false flag. I am not smart enough to make an intelligent guesstimate at what the sale price could be, assuming a sale does go ahead (pleaseandthankyouverymuch), but anything above 60p at this point will give me a little bit of nether-movement. Beyond a quid and I would be redecorating the ceiling, if you catch my drift.
If/when it does sell, I will be topping up on ECR and POW (the latter being awesome, I reckon) and adding to my safer divis / recovery stocks. Will also be investing more in crypto (something I am personally very bullish on) and SPACs offer some great opportunities, when H&L add them. I also tinker with WSB stonks :)
Anyway, enough waffle. Just wanted to join the chat. I lurk, don't post often and spend many hours bashing my head against the wall as I see proper grown-up likes beating on eachother but, emotions get high when ££ is on the line.
Best of luck to us all. Let's hope that the magical RNS lands soon as gives us the news we are all after.
Tesla has been profit making for more than 4 quarters, hence eligibility and subsequent acceptance into the S&P500. But I do agree with your point. As recently proven with the Gamestop squeeze, the markets are hugely sentiment-based, rightly or wrongly. Very frustrating with a share that does have an inherent value, such as GGP. Will be nice to see some blue again!
Crikey, not wanting to add to my own post but I did put paragraph breaks in there, honest guv! Jeez, that looks like an intelligible stream of consciousness rather than a well thought out, composed post. Damn you LSE.
To say yesterday was not much fun is a bit of an understatement. I was already down on EUA, having bought in initially at quite a high price, then topping up a couple of months ago when it surged to the 40s. But, I have confidence in the company and the sales process so was as happy as you can be when running a loss, figuring that it would be OK in the end.What yesterday proved - both in the overreaction and some of the board comments - were how many people invested without looking at any of the fundamentals. Having followed the "Gamestonk" story the last few days, it is very clear how many treat the stock markets as a win/lose game. And I make no judgement when I state that - everyone has their own strategy which they don't need to justify to, well, anyone!So, there was some surprise news. Many believed it was someone far more important to the organisation (as they clearly did not understand the structure) and freaked out. This causes a chain reaction as it hits stops. Those stops trigger algorithmic mechanisms which sell until PIs, IIs, MMs and any other two letter acronym you can name to buy. Sadly, too late in the day for the price to recover much, giving even the most level-headed of us cause for concern.I try not to read comments that bolster my confirmation bias but, yesterday, I made a point of it. I did more filtering yesterday than the entire chain of Starbucks. But it was an important thing to do because, in between the gloaters and the floaters and the down-right nasty human beings that crawled from the woodwork, were sentient beings that had a more useful stance on the situation. None of us knew the facts but some of us have the minimum knowledge to understand that, in business and in the stock market, X must be followed by Y and then Z. In other words, there are certain rules that must be followed and, from what I could see, none were broken.I thank those people as they helped stop me freaking out too much. Today's RNS confirmed the more astute among us that all is well and, reading between the lines, I would suggest that Alexei got caught up on the wrong side of the short squeeze rebellion yesterday as it read like he needed that cash and fast! Whilst I see and support the point of the "******s", as they like to refer to themselves as, actions do have consequences. Alas, not only to those that they are targeting but to other PIs, like them, who get hit with the flotsam and jetsam of their activities.As an aside, I note many comments speak of market manipulation. The chap who wrote "The Big Short", Michael Lewis, has a less known book, "Flash Boys", which explores this in more detail. Another book, "The Flash Crash", explains the one day event that happened some years back caused, allegedly, by a bloke in his bedroom in. Also a fascinating insight into the BS that goes on behind the scenes designed to part us dear, innocent PIs from our hard-earned. They are enlightening bo
Hey Rr101 - Stop losses are fine in a stable market but, when the markets are as bonkers as they have been in 2020, they can be next to useless. They either won't be triggered at the price you set them due to the market moving too quickly, or a modest 5-10% stop loss (which would normally be OK on a FTSE100 stock on calm ponds) will be triggered only for the price to stabilise within moments. That is usual for the AIM market, less so the FTSEs, but more so lately!
The Naked Trader books are good, IF you are going to continue day/swing trading. I've read them all and, as more of a long-term holder/investor, found the information less useful. Although somewhat dated, there are lessons to be learned from Warren Buffett essays. Common sense never goes out of fashion.
Hope you can use the holidays to re-evaluate your strategy and get on top of things. Small step backward for a giant leap forward, maybe? There are some large caps that are in recovery mode that also pay dividends, so that may be a good opportunity to recoup some losses :-)
@Rr101 - I feel for you. I tried spread betting briefly and realised very quickly that I did not have the temperament or timing to succeed at it. At least you now know that and can reformulate your investment or trading strategy. I personally just buy and hold now. During these unpredictable times where a black swan event seems to occur every few weeks, spread betting is particularly risky (albeit extremely rewarding, if you are good at it!).
Hope you get back on your feet soon.
What a delight to read a post that is well written, well researched, clear, free of insults and free of abuse.
Such a shame that there is a minority of imbeciles whose contribution makes such a post stand out so much. It should be the norm, not the exception.
Thank you Badshah.
Big thank you to everyone who has taken the time to reply - sincerely appreciated. My only wish is that I found this share earlier! My average is way up there (24p ish), so I don't think I'll be making my millions from it, but my strategy is long term and am happy to sit back and see how it all evolves, whilst keeping an eye on the more informative posters among you.
I did try swing trading in my early days (not on this share) but my timing is atrocious (ironic as I was a musician for two decades) and, having learned and accepted that about myself, have tempered my short-term exuberance for long-term chillaxing*.
*Apologies for using the word "chillax". I am disgusted and shall severely reprimand myself.