Dear Gemsearcher,
I know it won't console you much now but did you at no time consider looking at SUF's chart when it was trading at a much higher level?
Surely you must have noticed that all mining and oil shares regularly go up and down like a yo-yo? Mainly due to analysts' reports. That's how they justify their existence. Sell or buy recommendations, it doesn't matter which commission wise.
SouthernEra is no exception. A continuous never ending price rise only happens in cloud cuckoo land and the Isle of Crude.
One further comment.
SUF is now and has been for sometime in a damned if I do, damned if I don't situation.
Damned for being optimistic some years ago and now damned for being cautious and not releasing news until the agreements have been signed and delivered.
Or do you prefer the hype and promotion associated with junior mining companies? I know it helps the share price but for every gainer there is a loser and it is usually the small investor who gets fleeced.
I am sure it has taught you a lesson: never buy a share when it has trebled in price. You may miss another double but it is unlikely.
Think of it this way:
10 cents to 20 cents, not difficult,100% increase;
20 cents to 40 cents, difficult, 100% but to the 10c buyer 400%;
40 cents to 80 cents, very difficult, 100% but 800% to you know who;
80 cents to 160 cents, extremely difficult, 100% but 1600% to.....
(This formula holds good whether it is a cent or a few dollars share).
Etcetera.
Gues who's the one jumping ship at the slightest bit of trouble still showing a profit? And there are always sellers (real or shorters) but not always buyers. The latter will sit back and wait..... for a lower price!
You also know that shorters (mainly financial institutions and brokers) always win because they have the financial resources to win. Hence why in Australia short selling in junior mining stocks is illegal. Too many small investors were fleeced many, many years ago.
Anyway, here's wishing you a great week-end.
Crudestope. |
