Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
SNG raised 80 million at 175p last year. The share price crashed more than 50% and touched 77p after that. Look at the share price now, it is back to the placing price.
I believe this is part of a share life cycle. It cannot go on and on with rise and same with fall. It should find base soon.
The comforting thing in our case is the price has dropped on No RNS. It will shoot very fast on slightest positive RNS.
The problem with share market is that when price rise unexpectedly, the company has to issue statement that there is nothing we are aware of on the share price movement. But this is not the case when it goes down. Strange.
On HNI buying the share at 8.25 or whatever price, there is no guarantee that the price should always stay above that price. I believe HNIs acknowledge this before investing. We have seen many cases where in IIs have bought at a higher price and the share price is languishing much below that price.
This is part and parcel of share lifecycle. Hope to come good in the long run.
There is no explanation for such a drop. No news is generally good but in this case it is the opposite. This is way too oversold now and should bounce back strongly. Endurance and patience is the key.
It is strange how sentiments change based on the share price movements. Tomorrow if the share rises significantly, all the negative thoughts will turn into positive.
Few days back when the share price was near 6p, everyone was OK with the prospects of the company, in 2 days, most of us have turned pessimistic and have started doubting the company's potential.
Only those who have better control on their emotions (fear, euphoria) win in the share market.
if the price went down due to a bad RNS, agree doubts should creep in but with no news, WHY ? We all want the share price to rise and rise but nothing goes in straight line.
SNG went down from around 60p to 30p. I am sure people must be cursing the BODs the same way as is being done here. But then one day Boom, it went to 240p.
So Patience is the Key. Have faith if you believe in the science.
Share market is a pendulum that swings between un-sustained optimism and unjustified pessimism. When share price is dropped like this, pessimism creeps in and even long term holders panic and sell. The intelligent and patient would take these opportunities as Black Friday sale.