Member Info for StarBright

Hilarious! They have drawn themselves up to their full height.

With effectively mobilised shareholder support, Dr Cave might well prevail here. Worth watching just for interest...

Beaub11: “I never cease to be amazed how people posting here continually post in absolutes, as if they know something nobody else knows. Check the records of some posters here going back months even years and you'll see how wide of the mark their perpetual predictions have been, but they keep making them regardless of their abject failure time and time again.”

Indeed. It’s a modern curse - prevalent everywhere from the LSE bulletin boards to the highest level of government. People who lack the ability or confidence to think for themselves are susceptible to the false certainties offered by the garrulous, so it is self-perpetuating I’m afraid.

“It is only that these warrants are valid for just 3 months that makes this the best option.”

Makes what the best option?

The short-dated warrants ARE worthless when the sp is this far below the strike price. There is no mechanism for the warrant holders to push the price up, and no need for them to do so as they can buy shares in the open market BELOW the exercise price associated with the warrants.

Your argument that the existence of the warrants supports the share price is nonsensical. Rather than inviting other posters to learn about warrants, you should do some reading/thinking yourself.

ART123 - If a warrant holder wants some more shares, what’s to stop them buying shares in the open market...?

ART123 - How do the warrants “guarantee” a share price of 1, 2 or 3 times the strike price?

A bullish pennant on the 1hr chart!? It’s hardly a basis for macro-level commentary on stimulus and the future of fiat money... More patience needed to see whether meaningful changes are in motion.

It won’t be anything to do with the price of Iron Ore.

Rather something odd related to technicalities in the auction, late/as yet undisclosed trades or a spat/misunderstanding between market-makers. I doubt we’ll ever find out! It will be interesting to see where it’s marked up at open tomorrow though.

UT showing at 8.94

Last trade at 7.6

Does anyone have a good explanation..?

You own 1 share..?

You can’t have two tigers on one mountain...

I agree that charts are essentially useless if your intention is to predict price action in a share like UFO. Newsflow will be the principal driver for the foreseeable future, especially if the company demonstrates the ability to produce metals as well as RNS's.

However, resource companies benefit from tail-winds when the commodities they are involved in are driven upwards. The prospect of increased global demand for iron ore and silver is a valid component of any investment thesis for UFO.

Where commodities are concerned I think that charts are useful, precisely because they provide a framework within which to consider how sentiment impacts price action. The so-called precious metals are over-traded (relative to underlying use) and continue to hold a perverse fascination for commentators, perhaps as a result of their long and storied histories. As a result sentiment is a real driver for price action and charts are one of the few ways in which this can considered.

More of a sceptic than an expert where charting is concerned. I do think that commodities represent its best use-case though, so am occasionally tempted to engage.

My view is that the sideways channel is the feature to watch. A decisive break out of that (either above $26 or below $22) will indicate that market participants have changed their viewpoints and preferences.

Good upwards run today. Let's see how far it goes and whether it can be sustained.

I took a look at @Northstar's silver chart and associated analysis.

1. The salmon-pink sideways channel is the main feature on the chart. Until we see the price rise above $26 it is too early to describe price-action as a breakout.
2. The pennant he's drawn is weak. He'd have had to scrap it and re-draw after the Nov 9th bump for example.
3. He points out the bullish cross on the daily stoch indicator, but fails to observe that there have been eleven such bullish crosses since the sideways channel was entered. None of these have shown any predictive value.
4. He points out that "Silver tends to fly when CCI is above the red line". Of course CCI is most positive when the price is rising - it is calculated by comparing the current price with a trailing average. He appears to confuse cause and effect; in simple terms he's saying that there are nuts on the bird table BECAUSE there are birds on the lawn.

It's not the worst piece of technical analysis I've seen shared here, but it is nothing more than the output of an enthusiastic amateur who wants to paint a particular picture but undermines it by making some basic mistakes.

Max that’s not quite right. When warrants are exercised the company receives cash, but that isn’t true when options are exercised.

When warrants are exercised the company itself issues new shares to the former warrant holder(s) in return for cash. When an option is exercised the shares are just acquired in the market - no new shares are created. So shares in issue increase on warrant exercise but not on option exercise.

It’s an important difference.

The market makers would tell you that this is the level at which both buyers and sellers are prepared to transact. It’s not for them to explain why that is!

Futures contracts only go out to one year, which is nothing compared to the economic life of a mine. They will only be a small component of the data used for long term investment decisions.

It would be interesting to understand the level that major producers use when assessing projects today. Obviously they won’t be looking at the spot rate - which can be volatile and has been subject to manipulation. But there will be underlying level against which long term projects are appraised, and I would expect this to be far more stable. A company like Fresnillo might disclose this (oil majors do from time to time), I will do some digging.

Despite what we read here daily, Silver entered a bear market in September (-20% from a high of almost $30) and has gone sideways within a +/- $2 range since then. Chartists will want to see a sustained break above $26 before any discussion of cooking with gas. There’s every chance this will happen during the next 3-6 months.

Trades are disclosed electronically by the Exchange without buy- or sell- markers. Sites like LSE, ADVFN etc (or their data providers) use the timestamp attached to each trade to compare it with the prevailing quoted spread. They do this in order to provide an indication of whether a particular trade was a buy or a sell. Quite frequently this produces inaccurate results, although the majority of trades will be categorised accurately.

If your buy is shown as a sell it just means that you got a good price. Specifically that your broker traded for you below the mid point of the quoted spread at the point your trade was dealt.

Ignore the drivel you read here on LSE about MM’s marking up buys as sells to mislead investors - it’s nonsense.

CIT in Australia is 30%. On top of this are state- and national- level “royalties” (taxes by another name). It would seem prudent to assume that taxes will take 30-40% of profits. There will be a corresponding reduction in shareholder value. This is a material factor in valuation models of the type you propose.

Australia’s bloated public sector is hugely supported by taxes on reosurce/mining companies...

https://smallcaps.com.au/mining-taxes-royalties-remain-strong-pillar-australian-economy/