RE: @WOLF14 Mar 2021 13:51
One key thing i think some less experienced are missing is shares in issues.
The value of a company should be viewed not as the share price but as the market cap which is all the shares in issue combined.
SYME has rounded to whole numbers for simplicity 32,750,000,000 share in issue.
When looking for a share you want to increase in value quickly, The market cap and shares in issue are a major factor as to how quickly that will happen. There is company's out there with just a few hundred million shares in issue and low share prices. This is when you see huge re rates and transformational share price increase. Take ARB and ZOE last year from pennies to pounds. This would never have happened to the same level of sp increase if those companies had billions of shares in issue. The share price rise is capped by the amount of shares. Dilution is your enemy unless its small and it comes with lots of future growth.
You have to look how company shares are structured.
A company with 100m shares and a market cap of £1m can go from 1p to £1 (£1m to £100m market cap) if the business they operate starts to generate large profits.
The same company if already valued at £10m and with 1,000,000,000 shares in issue. Could go from 1p to 10p on the new large profits being generated.
SYME's share price rise will always be dampened by the amount of share in issues. A rise from .05p to 1p is £163m added to the market cap. So to double your money the company needs to find £163m added value to convince the market.
Now lets take a company like Mediazest. Share price is 0.008p Market cap of just over £1m with 32x less shares in issue than SYME. (this is not a plug its an example). All you need to move from 0.008p to 0.016p is £1m added to the market cap. So to double your money all the company needs to find is £1m of value added to convince the market.
Now SYME is recording seriously high growth numbers in clients so the market is already valuing SYME with a lot of future potential. Once confirmation of funders and securities issued comes, SYME will fly, but It may take a little longer than some here are expecting. Each 1p is £327,500,000 in market cap.
I hope this helps some on there journey.