I already admitted knowing virtually nothing about mining stocks, so keep that in mind going forward. However, I do know some things about financial strength of a company. I won't go there.
I do expect to see spikes in the future and will probably sell when I do. Of course that risks missing upswings all the time beyond what one sells out. Darlene, you have put a lofty bet on the table for $10 by end of next week. I would love to see it. Usually, those companies I invest in for the long haul to reach(for this purpose) $10, slowly build a good revenue base and, usually, have earnings that will carry it to that level. For example, ABTX has projected eps of .25 FY1998 and it recently sailed through 10, but has since pulled back for reasons I won't go into here. Suffice it to say that ABTX does consistent revenues and earnings each quarter. How is it that a mining company can grow and slowly move up in price? My first instinct(which is very ignorant on this sector) is to see a spike from announcement of "Finding the Motherlode", then a retreat. What will get it high, and what will keep it there? If someone says they found 200 million dollars worth of gold, it translates into $5/share right off the bat, but then they have to go get it. What multiple will be traded above that $5 in my hypothetical scenario? And why would the stock get above that multiple in the near term? I saw another mining company in the sector(I forget which) that in late 80s went up to 30 or 40, and has stayed there ever since. It is like they found a good mine and then it shot up, and that is all. No further growth. Does this industry only benefit those who get in at this level that we are in now? Where is the growth beyond the initial jump?
Is there any other way for a mining stock to let out news than just saying we found 200 million in gold? So, we are all waiting for that announcement to cash in? Can a stock like this tease slowly , so the stock does not sail in a day, but slowly gets bought into over time? Someone mentioned that BCMD did a 15 for 1 reverse? When? Does that mean that BCMD, at one time, had over 400 million or 500 million shares outstanding?
Still no word on the news. However, I am feeling pretty good right now sitting on 25% GAIN in two days of waiting, with the huge volume from yesterday indicating something may be up. I also looked at a few other mining stock that were trading at this level and had been going down during the year. Perhaps BCMD has captured the attention of the GOLD funds and other traders of minings stocks, especially after having a blip on CNBC. By the way, that must be a significant thing. I imagine that CNBC would get that info from a reliable source before sticking their necks out and wasting time on talking about BCMD on the air like that. So someone thinks this may be significant. Don't forget about that.
Last, what would it take for us to reach $10. If we traded, what, 12 million shares when we went to 1.50, would it take 100million to get to $10? I still doubt the news stuff, but I can't get over its timing with the volume move. It would be just too coincidental if unrelated.
Thanks for your responses.
Mill |
