Mineral & Financial Inve... Share Discussion Threads

[bargainbuyer] 14/12/2022 12:11

That may have been the case in the past but the outlook has been completely transformed and value always wins at the end.

[davevt] 14/12/2022 12:06

Bargainbuyer, because all of that becomes irrelevant if a share is difficult to trade.

The fundamentals of a company, and logistics of share trading are completely separate issues.

[givmesunshine] 14/12/2022 12:05

BB.. Thats to easy!

[givmesunshine] 14/12/2022 11:43

Agree - it works in both directions, even shares with large free float can be difficult in low volume ... Aldo looking forwards to an update on golden sun .. I don't know much about this part of the portfolio but looks like we will get an update very soon

[gb904150] 14/12/2022 11:04

Millions of shares are always available to buy and sell - at a certain price.

At the moment you can sell 70,000 shares at 17.465p. So liquidity isn't all bad. But often it is NT.

MAFL might come off a bit, or it might not. I don't think it's coming back to 8p.

My point was purely that as a very illiquid stock with a big spread it makes sense to long term buy and hold it. Yes, you might be able to trade for a few % profit here and there but then you have to know when to get in/out and you will have to beat the lack of liquidity and spread.

As baz said - it's now a 'project of national interest' (PIN). It is highly likely to become a mine.

I'm pretty happy waiting until that is the case.

[matt123d] 14/12/2022 10:50

Ha, thanks for that, good to know.

[davevt] 14/12/2022 10:34

You seem clueless to how shares work.

Can't buy millions of shares if they aren't available, hence why this share often goes to nt at these levels.

You need volume to make a market. If you have a load of people holding shares at 17p thinking it could go to say 35, and hence won't sell, and very few shares available, how can the price go up if there are no shares to buy..

[matt123d] 14/12/2022 10:21

That's incorrect. All about who's buying and selling at a specific time and how aggressive they are. Could be a buyer sat on the bid at 17p wanting several million shares.

[davevt] 14/12/2022 09:44

Yes it's all about volume. In the 8p range, way more free float, you can trade decent amounts.

When this share hits 16p plus you just can't do any volume. Try to buy and sell decent amounts and it's nt every time.

It's just the way this share is.

Is it great it's at 18p? Well, not if you can't sell any 😁

[timbo] 14/12/2022 09:27

In fact both of your approaches require similar patience and trust in the company's underlying value. To sell in 13p to 17p range and cherrypick it back at 8p to 10p for the next move is a good trade - there have been a few of those in last couple of years but they can be months apart. So davevt could have made decent money on those - interesting that it also relies on certainty that the company at 8p to 10p is hugely undervalued and will eventually be picked up again.So, two very different styles with MAFL but underpinned by similar viewpoints.

[baz9707] 14/12/2022 08:54

A bit of info about one of the mines operated by Golden Sun Resources 5.5% MAFL

Bellavista Costa Rica

Approximately $30 million has been spent on exploration and feasibility studies 1985-2003; about $70 million spent on construction and development in 2003-4 (much of the equipment still on site); Golden Sun's board and shareholders have invested approximately over $8.0 million to-date.

[davevt] 14/12/2022 08:28

' in fact it’s the absolute opposite, low float stocks are capable of trading at consistently higher prices, purely supply/demand driven.'

Nope, just because the price is high doesn't mean you can buy and sell in any volume. Think about it, if most of the shares are already owned by people who want to own them,

I have been trading this share years.

[matt123d] 14/12/2022 05:20

In fact it's the absolute opposite, low float stocks are capable of trading at consistently higher prices, purely supply/demand driven.

[baz9707] 13/12/2022 21:29

When I visited the Redcorp team for a week earlier in the year I was impressed. Only exploration site as a Portuguese national interest - It will become a mine.

The royalty agreement in Costa Rica will also be worth millions in the future.

GLA

[davevt] 13/12/2022 14:51

Maybe you have a small holding...when you have a large one you have to sell at this level. There are simply not enough shares in circulation to stop larger trades going to nt.

Been here so many times.

It will never get over 20p for this reason, not if you actually want to share deal more than a few quid.

This has no reflection on the company, it's great, there is simply not enough shares to get the volume required at higher levels.

[givmesunshine] 13/12/2022 11:44

Worth a listen



Afew things on the horizon and valuations straigt fromthe man himself.. annual report any day and further progress updated on ather holdings

[givmesunshine] 13/12/2022 11:41

past performance etc - company is now clearly in the stage of realising its assets - got 8p+ in cash now - only fool would have bailed at that point (although my first reaction was to hover over the sell button) glad i read in detail - still only capped at 6.2 million. Illiquid yes, expensive No - only reasom to sell is if you needed the cash quickly

$10 million baseline value on lagoa now .. but will get bigger.. only have to read those drilling results even with a 50% discount 35p share ..

[davevt] 13/12/2022 11:12

'it's a share to buy and hold....'sure, but not at 18.

Do that back in the 8s.

[gb904150] 13/12/2022 11:09

Yes, great company, well run it seems but hard to buy and sell.

The spread is large.
The liquidity is tiny.
It is a nanocap.

That's why it's not really a share to buy and sell.

It's a share to buy and hold for several years and at some point in the future when it is much bigger, to sell. Or let it get taken out by a larger player.

If you're going to take the risk of holding a nanocap like this there's not much point trying to make 10% or even 50%. It's got to be long term, surely?

[davevt] 13/12/2022 10:37

Unfortunately baz the lack of free float halts it in it's tracks every time. In the past I've been 80k up and couldn't even shift half of it because couldn't make any chunky sells.

It can be fine if you're playing with tiny amounts, but gets stuck with any thing decent.

For instance I couldn't have sold out at the current price.

Mafl is a great company, but difficult to buy and sell.

[baz9707] 13/12/2022 10:12

Dave that post has gone well.

I am enjoying the continues rise and a new shareholder base at a higher share price

Underpinning a base price and plenty of promising news on the horizon.

[givmesunshine] 13/12/2022 08:47

Hi Bargain

Well worth watching the Proactive interview last week that gives a very good insight as to where this is going

Lagoa is only recorded with a NAV of £1.7million - but now has a "hard value" of $10.8 based on PEA alone .. under the put option

Aslo some interesting sounding changes on other parts of the portfolio, that i didnt fully understand .. some news on these expected on/before 18th - and Annual report any day to year end Sept 22

I thing NAV will be about 23p share (as of sept) as the $1million didnt show in last valuation , but current developements put 6p/7p in $2.5 mil in payments and a $8/ $9mil on that as it stands - say 20p share.. so im going for just under 50P as of today - with significant upside potential over the coming months

[bargainbuyer] 12/12/2022 22:33

I thought $2.5 million was about 6/7p per share, so on that basis it has risen just 1.75p since RNS confirmation of receipt of the monies.
In any case, with the 5% value not accounted for, there is a very good case for this to be trading at a premium to underlying NAV with expectation of a trigger.
The above is really in regard to one investment but there appears more interesting matters under the bonnet too here.
I guess it is an interesting hold particularly if you can add on any dips.