RE: Thoughts on Ta1 Jun 2021 23:12
Ezhik,
Why would I think less of HE1 because it is an exploration company? The company has a CEO who so far has delivered and kept his shareholders up to date with what is happening; has cash in the bank to fund the initial drilling program; has academics, a team of geologists and mining experts who believe that Helium One has the potential to find HE in Tanzania; as SGF has said, it has gas seeping to the surface; has the Tanzanian government backing; has a logistic and strategic location; have a relative easy business plan; has no debt; sure, since the company is an explorer and not yet a producer, we can not perform key company performance statistics that are commonly used to perform fundamental analysis on a share such as earnings per share, price-to-earnings (P/E) ratio, price-to-book (P/B) ratio or return on equity (ROE), so we have to accept that we must look at other factors (mentioned above) that we can use to tell us the company is not going bust tomorrow or have their assets being taken by the bank.
As for your choosing TA instead of looking at the "fundamentals of our investment" choices, I could say you can absolutely love the chart of a completely busted/fraud riddled company and buy into it because the chart look peachy! I have an example of one, MMXM3 in the Bovespa Exchange, lovely trading chart giving over 2000% not long ago but went bust and took a lot of investors down with it; the fundamentals were rotten and the major shareholder was a crook.
I think you are underestimating the knowledge of many who have invested here. I could safely say that the vast majority understand that HE1 is an exploration company and that there are risks involved; but what most here would accept if we were to fail to find HE is that we don't have HE; what we wouldn't accept is that we find our CEO has a bad reputation and mismanage the funds, waste money and time, we riddled with debt, the government swindle us, the project is in the middle on nowhere and it is hard to get to (no roads), the locals are hostile, our mine is polluting and we have to destroy forests to explore it, the final product us abundant and we have plenty of competitors, etc.
I think most here look at these fundamentals than what fibonacci will be telling them. I think any of the indicators I mentioned above going south, and the finger will be hovering over the sell button before any chart can say oops.
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