RE: Share price10 Oct 2023 17:33
Rsd,
This is about as high a risk stock as it is possible to purchase.
The sector it is in (exploration) has far more failures than successes, so right from the get go the odds are against any one of them hitting the motherload.
On top of that this is a minnow who have so little capital that it is more or less a hand-to-mouth operation. This increases the odds of failure (from a shareholder pov) (oh yes, and did I mention it is loss making?)
The way around it if you are attracted to high risk but potential high reward, is to but into a couple of dozen promising exploration companies. Of course that spread of risk also affects potential returns but that is the price you pay and is called risk management.
The other method to help combat the high risk element is never to put so much money that if you lost it all, would "hurt" you emotionally as well as financially.
You are down 45%. If you have put £10k in, that might be giving you sleepless nights. If it were a £100 you wouldn't care.
The only reason private companies become publics ones is to raise "free" money as and when necessary. Any loss making company is always only a matter of months or a year or 2 from the next RI. That's just a fact of life.
As for BoD and CEO's, well, welcome to the "real" world. I never, ever rely on what they say as truthful or honest.
They will be ambiguous, over optimistic and close to downright deceitful, but then, what choice do they have? If they don't come over as enthusiastic, and very bullish, and everything going to plan, and no problems on the horizon, then the SP would be hammered.
Which is why, when it really goes tits-up, it comes out of the blue with no one seeing it coming.
All you can do is think for yourself, Ignore what the BOD ever say, look at the money coming to the money going out and gauge how long before the next call on the share holders to give them more. Research the market they are in. Are they best placed for discovering what they are looking for, or are there bigger, less risky companies doing the same thing?
Never bet what you can't realistically and COMFORTABLY afford to lose...EVER. (This removes emotional attachment to your decision. All you have done is buy a share certificate. Never fall in love with it, because that bit of paper has no feelings for you.)
Always remember you will be the last to know anything.
So, always before you buy, have a plan. What price will you pay to buy the stock (and why, why that price right now?) What do you expect the rise to be? At what price will you sell and again why? If you are wrong and the SP falls, what price will you decide to sell and cut your losses, and why that particular price?) And assuming all goes well, what profit do you expect to make BY WHEN? what time frame are you working to?
If you ever buy a stock without a plan in place based on some sort of your own research/system/logic, then how can you ever know what to do if it goes well or not