RE: RE: RE: RE: RE: RE: Molark99- look at thisMolark99, what drives a stock price?
People drive the price of a stock. Common shares which pay no dividend are priced based on what the market is willing to pay for them. There is no real value to these pieces of paper. If everyone woke up tomorrow and said, I don't like stocks anymore, the value of all common non-dividend paying stocks would be 0 as you would have no-one buying them.
'Investing' in any stock is not really investing, it is gambling that you think someone will pay a higher price for the stock than you did when you want to sell it.
When dealing with dividend paying shares, as the company makes more money, you hope they will increase the dividend so that you make more money. Dividends are real $, not paper, so there is much less of a gamble here. It is still a gamble though, if the company cannot make enough profit to pay the dividends, the dividends get cut and most likely the stock price will also go down (or has already). Take the Canadian banks, they pay a nice dividend, but if their financials don't pick up, the dividends will be cut, and that is what people are expecting and why the share prices are so low right now.
Right now, we are gambling that as the price of copper goes up and ML increases production to a profitable level beyond financing obligations, the cash will start coming in and people will value the stock at a higher price where we can exit with a real $ profit. If moly also starts to run, that only means more profit for ML.
I would suggest you do lots of reading, There are many books out there, not everything in them is going to apply to you and your investment strategies. Read; Security Analysis Graham (1934), Jim Cramers Real Money, The intelligent Investor Benjamin Graham, One up on Wall Street Peter Lynch, Beating the Street Peter Lynch, And there are so many more out there.
Good luck and be careful, you are gambling after all.
Schor