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Advanced Explorations Inc. ADEXF

"Advanced Explorations Inc is a development stage company. It is engaged in the acquisition, exploration and development of properties within the resource sector."


GREY:ADEXF - Post by User

Comment by B-Diddyon Aug 13, 2012 5:22am
252 Views
Post# 20209960

RE: RE: My $0.02 worth

RE: RE: My $0.02 worth

Thanks V-Man.

That was exactly the theme of one of my points, that large drops in the SP occur easily with penny stock like AXI, but do not often (in fact rarely) represent the "market" (as a whole).  It only represents share movement on that day.  The SP can crash on a very small % of shares being traded, and by an even smaller proportion of share-ownership entities.  (It can also go up in the ame wa, but this day trader territory.)  So the SP tanking and the market crashing are very different things, especially with a penny stock, and most definitely if you count yourself as a long player.  Does it really mean anything tangible regarding the "market" or even AXI for that matter?  Often not.  It only means pain for some of those cashing in their chips (those who panicked and think they'll mitigate their loss by getting out), and also a bit for those of us who like our summary sheets to always be in the green (which is not realistic for a "long" play on a penny stock).

It's a lot like panicking when the property market drops but you weren't planning on selling your house anyway...  it just doesn't feel very good, but it may mean nothing tangible to you in the long run.

With AXI, the "real" long play was always going to be about the Chinese, for if they do follow through the prospective value could be HUGE.  It could even cause a ripple effect, for if the Chinese commit to RB-C and its respective port, this opens up low cost mining opps in the entire area, and I think then many other suitors, Chinese and otherwise, may look to the area for low cost iron (and other minerals), such as Tuktu for example.  Whereas, playing the SP off the results of the FS (which some people obviously did to their detriment), when the Chinese still had a decision to make was both a gamble and a background story to what will happen next...

This is my thinking anyway...

Cheers,

B

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