RE: Share price25 Feb 2019 17:44
Good afternoon all.
Since my last post, some here have had a thoughtful weekend and I thank you for your considered posts. However, I must reiterate my simple response to BBB's start of this thread............mine gold!
The SP, after wobbling between about 0.5p and 0.7p for ages, 2016 saw a ~40% rise to ~1p. Following a long decline on little progress to ~0.4p and consolidation, we have seen alternate good news and dilution that has resulted in variation of ~40% from 23 to 39p. Nothing is likely to change as it appears to be news driven and so as we only have build progress or exploration results. Although we are funded and dilution lows are not expected, lack of interest will allow drift unless there is a news flow and hence my calls for this on the website and on which we have seen some action of late.
Yayay's point that the small free-float of shares may inhibit change in SP is well made as it gives traders less chance of making money from volume of trades. It appears that the SP is readily moved down on relatively small sells, yet responds upwardly rather less to buys. That suggests to me that traders don't want to hang on to shares sold and will mark down the SP on the least excuse to try and get them bought and also to trip any buy orders. Hence, placing buy orders to increase holdings at a bit below the SP may do the buyer a favour and the trader too, but not LTHs.
Hopefully the lack of need for funding will keep the SP in the 25 to 35p range and positive news will move it to ~ 40p.
Strongly positive news such as start and achieving stage one of gold production will be needed for it to get to a higher range of say 50 to 60p. The current market climate seems to me to be risk adverse and rocketing SPs in ant share less likely than some years ago.
All IMO of course and from 'rockhead reasoning,' that should be taken with a pinch of salt. Some of you will no doubt have a much better grasp of the financials than a retired geo out to grass and are welcome to comment.
Regards to all, R.
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