Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"A sum of money you make obvious you have no understanding of its meaning.
Your posts continually demonstrate an abject lack of both very basic financial and business knowledge."
The company burns hundreds of thousands a year as it slowly but steadily destroys shareholder value. A million pounds really doesn't go very far. What is the 'basic business and financial knowledge' you think I've missed?
Enlighten us, oh great one
"A sum of money you make obvious you have no understanding of its meaning.
Your posts continually demonstrate an abject lack of both very basic financial and business knowledge."
The company burns hundreds of thousands a year as it slowly but steadily destroys shareholder value. A million pounds really doesn't go very far. What do you believe I've missed?
"Some miss the potential EOY Pioche Project of incoming £1.05 million allied to a 3% royalty-all available researched info., from both sides indicate this is on track for success."
1.05 million is not very much money. Staves off another placing for a couple of years, that's all.
I don't think you guys understand the concept of opportunity cost. Whilst your money has been tied up in this doomed penny stock it could have been generating real growth and/or dividends elsewhere.
"You now seem to think that PC has a massive track record of failure and yet didn’t seem to think that a couple of years ago."
Yes, it's called 'learning from mistakes' and 'changing your mind'. The biggest losers I've met in real life never do these things. It's the one absolute constant I've noticed about them.
"Your opinion isn’t particularly credible."
You're sitting on a larger loss than I ever will.
You clearly think I've fallen into the same psychological trap as you 'middle-aged man who can never admit when he's wrong'. I am very clear that my investment was a mistake.
No doubt you will tighten your grip on your shares as the price goes down absolutely insistent you never made any mistakes, right until the bitter end
"From my memory he had never told anyone to sell up as they will lose all their money" - he's still holding because he hates the idea of selling at a loss. I don't make investment decisions based on whether or not the 10 or so regulars on the chat forum for a penny stock are still holding.
"Ah so now we are just back to the old line of ‘because nobody has bought it yet then nobody ever will’ which is of course nonsense."
The important signal here is that the person responsible for closing the deals has a terrible track record and is unlikely to succeed at the thing you want them to succeed at (it's not just about the current main hope, but over 18 years)
Patrick is able to fund his lifestyle doing what he does because of a gold find in Australia before SRES was founded several decades ago. He was successful, once.
But the track record suggests this was blind luck, and he's very close to retirement age.
I know it exists, it's just a) the track record on getting deals through to completion is bad and b) $1.25 million isn't really that much money. It staves off placings for a few years whilst they continue to do what they've been doing.
Keep in mind that Patrick went to university in 1981. He is in his early 60s now. The signs are that this company will bumble along doing placings, paying a salary and then eventually fold when either Patrick retires or a placing fails because there aren't enough new investors willing to put money into 18 years of failure.
"Now:- no matter what price I sell at I cannot make a loss , of course you don't have any appreciation of the bigger picture."
I don't think you understand the risk here. All shareholders will lose whatever they have if and when the company folds. Your price will be zero on that day.
"How much does it cost to get a competent seller, paid by results for Pozzolan or Perlite?or maybe both ? Impossible?. "
You're trying to find a board-level person who can close multi-year partnerships or sell a business, who also has to persuade them to invest to get the mines operational. And you're asking them to wait until revenue starts flowing before they get paid. This isn't the profile of an employee, this is the profile of an entrepreneur who is prepared to make a significant personal investment in SRES. I don't think such a person exists who is willing to become business partners with Patrick and the Board.
Everybody still holding seems to have embraced the following fallacy:-
"I know it's a long way down, but if I sell now the loss becomes real. If I just wait long enough through multiple placings the price is bound to go back up again and eventually Patrick will do a deal"
There is absolutely no guarantee future placings will actually raise enough to keep SRES in business. It's a dog of a share led by somebody who has gone almost 20 years without generating enough revenue to even pay their own salary and all previous investors are underwater. There is a very real possibility they will eventually run out of new investors and then the game will be over.
"Surely not. The stuff must be saleable. Someone must want it"
It may not be saleable at the current price given the investment needed and transport costs.
"Imagine his pain when we sell at a profit knowing his money is now ours."
My money is not yours. The stock is worth even less now than when I sold. No transfer of wealth happened from me to you. Anybody who bought the stock I sold is now underwater.
"It is obvious you failed at the first hurdle by did not understanding the basic premise for investing;- which is not to invest more than you can afford to lose."
I didn't invest more than I can afford to lose.
I'm pointing out that your theory of holding a failing company forever 'as it must come good in the end' is very wrong.
You are not demonstrating refined business sense and insight by holding onto a failing penny stock because you refuse to crystalise any loss. It's simply ego refusing to let you admit you made a mistake.