Post by
javaman12 on Mar 27, 2023 11:35pm
RE:Stock Stalled @.02
Martyboss there were a lot of cheaper Rockcliff shares bought before Christmas (in the last 6 months). So if some larger shareholder, at the retail level, is deciding to exit, then they may feel that it would be timely for them to try to do so now.
I doubt that management insiders are trying to exit. That would spell suicide for this company!
Some retailer shareholders could still be in the money, if they chose to sell at 3 cents! But I don't know if there will be any takers for their shares! But I am open to surprises!
They would be more likely to sell such a large block at the 2.5 cent or maybe at the 2 cent level now and try to break even! But would anyone at all, now choose to buy them?
In a way, I am glad that I am still invested in this cheaply priced stock, because the downside risk is much less when the share price is already, so close to the bottom! And I would be less likely to lose, even more money!
I had to exit my Foremost Lithium stock because the intense selling there by their shareholders was making their share price, sink like a rock in water!
Everyday after I bought in, their shares fell quickly down in price! Ouch that hurt the pocket book deeply!
That was completely unexpected by me, since that company seemed so destined for greater things! Maybe after some more drilling next Summer, their share price, may yet recover?
Losing money, so very fast, was a painful experience! And this has happened to me, so many times before!
In the lithium space, for now, it appears that an investment in an actual producer is the very best way to go!
On Bloomberg TV today, I noticed that some Australian company, producing lithium in a very big way, had their shares rocket up by 100%, after a cheap takeover bid was rejected.
For explorers, the lithium space will be big, one day. But today is clearly, not the time!
In general, the exploration space will be a difficult place to gain any financial traction until the demand for commodities becomes, much more pronounced! And with a looming recession possibly in the cards, we had better not hold our breath in the waiting for these better times!
Extreme patience is necessary, for now!
In the commodity sector, focus on the larger producers and wait for some follow through in price at a later date, for most of the junior explorers. Only the very best will do well in the shorter term! And many of those are already priced, too expensively!
Rockcliff remains a good value at these levels, but with a stock that can't be sold, does it remain a viable investment? Some might even, consider it to be a value trap!
As I see it, in this shorter term, the onus is on management now to monetize the company by selling it off to some potential buyer. This company offers lots of value! They should get on with it!
Ken told me this recently by e-mail in regard to Rockcliff's properties (unlike me, he still has not lost his faith!):
"...I still am most excited about our copper upside. And why wouldn't l! We have 4 NI 43-101Resources and two PEAs with over 1.0Bt of high-grade copper, zinc, gold and silver. Presently, only 2 mines out of 31 mines in the Belt had initial pre-production resources greater than our Talbot, Bur and Tower-Rail resources. Only two! In my opinion, these 4 deposits one day will become mines AND they will grow as most are open in every direction. I believe that Hudbay will put Talbot in production. It is such an incredibly gold rich VMS deposit and remains open in every direction..."
That's a lot of resources and it seems to me that he should be able to sell them! Well in time, maybe, he will actually sell out to Hudbay?
But couldn't these plentiful resources also offer some considerable value to some other interested party?
Why can't they be mined by the company itself?
Wait until the Fed has finished raising their rates to their highest level in their hope to kill inflation and for any potential recession to end. Then the explorers, may yet again, get some better attention from the market.
The recent potential roll back announcement didn't help Rockcliff's share price.
If it was an unnecessary move, it was a stupid one to make. Management was probably thinking that it will be inevitable to make such a move this year, or they wouldn't have approved it at the annual AGM.
But shareholders are left in limbo, not knowing when it might have to happen!
That puts a damper on any upward move in the share price.
An overzealous seller also helped, kill the price move higher which almost seemed about to happen!
Lastly, management made a promise about doing a drilling program that never occured!
The last disappointment was a very painful one for most shareholders to accept. Management has only themselves to blame for that!
Drilling the Pennex property offered the possibility of a huge discovery! Shame on them for not drilling it after announcing that they would!
If I thought that I could get out now at 4 or 5 cents, I would probably be gone in a flash!
For some strange reason, these shares offer little present value to the market. But our shares are not alone in this regard! There are many other company's shares in the exploration space that have also faltered!
Rockcliff management has their work cut out for them. They have lost the faith of the market place! I do hope that they can get it back!
Still trying to remain positive during this very difficult and painful time!
All the best! Java