RE: Scott16 Oct 2021 11:20
Good morning,
The sole purpose any of us investing is to make money. In my view both companies present good opportunities to do so but for very different reasons.
PANR's investment case is far ahead of 88e on a fundamental basis. The success case is clearer, the risk to success is lower, the economics of success are better. And the narrative on the fundamental differential of the two cases by Scot126, Olderwiser, Rabito and others I believe are sound.
The big difference between the two cases outside of the fundamentals is the level of awareness and "fandom" in the markets. 88e as we all know have a huge fan base, there are 88e Facebook and Twitter fan clubs and social media "influencers" promoting 88e with thousands of followers who people follow the advice of - sometimes I would suggest quite blindly. This fan base is, I would argue on the whole, inexperienced and do not understand the fundamentals of the cases, but are in love with the idea of turning 1.7p into 50p and lack even the most basic appreciation of what that means from a MCAP perspective - instead seeing the unitary value of a share being in the pennies as meaning it is more likely to rise to a higher price than would a company whose unitary share being in the pounds regardless of the MCAP.
But what that 88e fanbase means is that on the whiff of any positive news, and on the run up to the 88e drill programme, we could and should (as has happened every year for the past 7 years) expect a hike in the share price, and this year quite possibly an even greater hike than previous years given the reach the company now has. It won't be down to fundamental appreciation (unless of course there is FO news along the way), it will be down to hype and hope. But making money from hype and hope vs. fundamentals still means you are making money. Interestingly, PANR also started to see some of this as well when Contrarian888 with 15k followers on Twitter started to present the PANR case albeit on a much smaller scale than 88e has achieved and also linked to a much sounder fundamental case.
Don't get me wrong, do I think 88e has some fundamental basis for investment? I do, but a much weaker one than PANR. But I believe we have two companies here which almost have the inverse investment cases when looking at how money will be made.
PANR has almost unbelievably good fundamentals but very little awareness. The big money will be made when the awareness catches up - which it is starting to do btw.
88e has almost unbelievably good awareness and fandom, but significantly weaker fundamentals. The money will be made in the short term from fans reacting to anything positive that bolsters the fundamentals, and longer term IF the fundamentals come through.
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