Sula Iron Share Discussion Threads

[michaelmouse] 09/1/2017 09:05

Positively giving the company away at this price eh bookwormrobert?

Incidentally, are you new to investing? I see your profile indicates you joined ADVFN this month ;).

Keep going. Tipped at 5.4p in 2014. Just 20 bags before breakeven.

[bookwormrobert] 09/1/2017 08:04

I said the shares are very cheap for the following reason:

This AIM company has a market cap of about 5.33m.

For that money it owns various exploration and mining rights, and it has conducted fairly detailed exploration on that dirt which indicated a rich surface gold deposit there. It also has a very experienced and well-respected new management team in place, and it has already arranged and paid for further JORC compliant drilling to investigate the resource's commercial potential.

It also owns potential iron and coltan reserves.

That's a ridiculous amount for 5.33m! Of course, how we came to this point is another story, and I'm sorry for the investors who put money into the old company. But that's history now. Right now, this share is cheap.

If you want to take aim at the mineral exploration business in general, please do. But without it, we would quickly run out of natural resources!

[michaelmouse] 09/1/2017 07:48

@deanroberthunt

"one should always have a high risk explorer like this in your portfolio."

Why?

"It's called a balance portfolio..."

Don't think so. I should do some more reading around balanced portfolios if I were you!

[escapetohome] 08/1/2017 20:20

Not at this stage we are just a tiddler.

Profits will come, revenues wWILL BE IMPORTANT, BUT THAT IS NOT RIGHT NOW THE PRIORITY.

WE GOTTA FIND THE STUFF FIRST.

[michaelmouse] 08/1/2017 19:53

Very helpful I'm sure.;) Perhaps you'd like to have a go at my challenge though?

[escapetohome] 08/1/2017 19:51

4 boxes ticked folks

Forget The bear , and that is being charitable, who talk of revenues.

[escapetohome] 08/1/2017 19:49

All junior resource companies can be evaluated and ranked utilizing four key criteria:

Share structure: should be tightly held with significant holdings by insiders and management.

People: should have technical expertise and experience with past successes and not a series of failures.

Project: should have favorable geology and geopolitical jurisdiction with an experienced and successful geological and engineering team.

Working capital: should have significant cash on hand and/or the ability to raise funds without severe dilution.

[escapetohome] 08/1/2017 19:37

Gave you a tick up bookworm, good summary, i would add the multi potential of the asset:

IRON , GOLD + POSSIBLY COLTAN

I think iron alone accounts for current price.

[michaelmouse] 08/1/2017 19:36

All in all, some fair comments although I'd dispute the following:-

"Arguably the shares are very cheap right now."

In what way are they cheap?

Your last sentence is correct I'd venture. "This is a punt".

I'll leave you with a challenge.

If a punter buys tomorrow for 0.27p offer then when is the opportune price to sell should the share price climb and would you recommend a trailing stop loss and if so at what percentage?

As a long term investor, I wouldn't have a clue with a gold explorer with no revenues never mind any other fundamentals to guide me. That's why I'm not surprised to see that 83% plus of short term traders (i.e. those that use CFDs and/or spread bets) lose money.

[bookwormrobert] 08/1/2017 18:40

If we put aside the vexed question of ShareProphets what do we have left with Sula?

We have a smallish gold exploration company under competent new management with a resource in Sierra Leone. For the test results see their website - they're preliminary but very interesting.

In the next six months there will be a new drilling campaign (already paid for), which will lead up to JORC compliance. After that, if the drilling results are positive, money would have to be found to start up mining (debt / JV / buy-out / dilutive share issue).

So, Sula is definitely high risk. There's country risk and mining risk to consider. But it's also potentially a very high return.

Arguably the shares are very cheap right now.

I'm in. It's far better odds than you'd get in any casino. But I'd also discourage anybody from putting too much into this one share. This is a punt.

[escapetohome] 08/1/2017 18:07

Thats true , bears are welcome.

( unlike on other threads)

[atlantic57] 08/1/2017 18:03

It was always good to have a healthy discussion, thank you Michael for offering
An alternative view.

For myself T1ps.com which was the forunner for shareprophets had an outstandingly good
Record initially and I personally benefitted from those t1ps.Howvever later on a failure to understand the geology and quality of manangement resulted in huge losses in companies like Vgm ascot mining and Norseman gold.

I have not invested in sula on the back of shareprophets comments.

Yes it is very high risk and could end in tears but on the other hand it could all come together.Each individual investor weighs up all the factors and makes an investment decision.

[michaelmouse] 08/1/2017 16:41

"AFPO was a fraud and that 10 bagged"

LOL. You inadvertently make an absolutely brilliant point. Many companies can multi-bag even frauds. In the short term, just because a share price rises don't think you got it right and just because a share price falls don't think you've go it wrong. In the end it's the company's fundamental value and execution that will hold sway. The share price will follow over the long term.

I can think of a number of companies that have multi-bagged in short time and are valued at multi-millions despite producing next to zero revenues. Most have been pumped up on nothing but hot air and inevitably many will crash and burn equally quickly.

[escapetohome] 08/1/2017 16:37

Now we give all these jobs to the spanish , yes they are good workers, but they send their money back to spain and help the spanish economy.

And the spanish economy is stronger than ours it is tied to germany and is disciplined.

And our economy is based on consumerism and thats how we create a boom to give jobs to the europeans who come here.

What happens when we bust? There are an awful lot of jobs to be cleansed. Perhaps brexit will be the excuse for losing the jobs.

[deanroberthunt] 08/1/2017 15:41

AFPO was a fraud and that 10 bagged

[escapetohome] 08/1/2017 13:55

As ive said michael let the share price be the judge!

Zanaga iron , low around 2 p now over 10 p , on iron.

[michaelmouse] 08/1/2017 13:39

Let me know when you plan leaving and I'll pay for your flight. ;)

[escapetohome] 08/1/2017 11:14

I would say the uk one actually.

Sky high house prices no one can afford. Property bubble not based on fundamentals.

Economy highly dependent on house prices, consumer spending.

Politically unstable , no eu policy going forward.


Give me sierra leone any day!

[michaelmouse] 08/1/2017 11:06

One company generates revenues, profits and cash has a enviable client base and is based in the UK and currently valued at 9 times last year's earnings.

The other is a gold explorer that has neither revenues, profits or sufficient long term cash and is dependent on the stability (both politically and otherwise) of Sierra Leone.

Which one is more high risk in your opinion?

By the way, I'm not a share tipping service.

[escapetohome] 08/1/2017 10:30

Michael you say tracm8 is not high risk. You say dont judge a share price till the end. You put a price target of £20 on tracm8.

But here you are judging sulas share price and we are nowhere near the end.

We dont know that the 6 p is unobtainable.

[michaelmouse] 08/1/2017 10:25

bookwormrobert

I don't have a grudge against shareprophets as you put it, but I am watching their activities very closely. I wouldn't dream of suggesting anything illegal of course.

Stanley Gibbons is a good example. They try to write this one off as an aberration on their part. Yes we all pick stinkers from time to time. However, some appear to have more than most:-



Well, well. SULA tipped by said organisation in 2014 at 5.4p. So that's a 95% loss then. Another 20 bags from the current 0.265p to get your money back.

There are so many example where they try the same trick. Not just SGI and SULA. R4E and FRI(now Concepta) are others that come to mind and I am sure there are countless more.

Fraudbusters are they? Ummm............Consider me as Internal Affairs then.

[bookwormrobert] 08/1/2017 10:17

Hi, Michaelmouse! A few quick points:
1. I've been a shareholder of Centamin for yonks, so I'm pretty happy about that! Currently, I'd argue that Centamin is seriously undervalued compared to other gold seniors; hopefully the market will correct that soon.
2. So much of this conversation depends on how you see the future of gold, which is as much as to say, how much you see the future in general. Personally, I can't imagine that we won't have a major world crisis in the next 1-2 years, given the players involved, so I see gold going up.
3. There are plenty of lousy British non-resources companies on AIM. May I mention the scam du jour - Cloudtag?