RE: Newcomer to he129 Dec 2020 22:23
IMO the current share price is over valued given that this company isn't yet producing revenue, other than the investments from share buyers. You wouldn't invest in a company that claims to have an amazing product but hasn't yet produced it. Get it to market first. Same with prospecting.
I say this only as I have been here before with prospecting companies (oil, gas, lithium and gold), where the only income they receive is via issuing shares, which they report in their quarterly finance reports. When they fail to uncover materials, the share price reaches sub penny levels. How many of you have seen a sub penny stock recover? It's priced at such for a reason.
What you want to see is a mining company already producing its own revenue without the need for shareholder money. Self producing revenue, without a placement or issuing of shares.
Before you all call me a deramper, I'm just sharing my experience for people to consider, as I have a huge desire to punt here, but ultimately that's my emotion getting the better of me and a wish to get rich quick talking, rather than my common sense. Prospecting companies are different to normal stocks. They are high risk, high reward, but will only be high reward if helium is found. We at this point would be funding their desire to discover helium, rather than the operation to mine and market it.
I shall not be investing until they post the inevitable update saying that progress is going well and helium has been uncovered, but thus far there has been no helium found.
Just my opinion, I'm a keen follower of this stock but shan't be buying until the share price reaches 1-2p, which is more reflective of a prospective/ non revenue-generating operation. After all, there are many stocks generating a net profit with a lower share price then 6p.
If they find helium and begin mining, then my money will be used to fund their mining operation. Not their discovery.
Just my two cents, and of course I wish everyone all the very best of profitable luck. Dyor