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Catalyst Copper Corp. CATXF



GREY:CATXF - Post by User

Comment by elmothefearlesson Oct 24, 2012 5:14pm
158 Views
Post# 20520104

RE: I strongly believe share price always tells

RE: I strongly believe share price always tells

I strongly disagree.  In the long-term, share price will always reflect fundamentals, and what a company is worth.  In the short-term, it's a recess during kindergarten.  Technical traders distort the value of stocks.  The reason we see unnecessary run ups and sell offs in stocks is because technical traders being incapable of properly analyzing a company as a purchaser would.  This creates an opportunity for savvy, or patient, investors to pick up companies on the cheap.

 

So I think what you are saying is 100% not true in the short-term.  The market is a mess right now, CCY is a very small company, if you could show the average investor that the average takeover price for a company is $0.04 / lb and CCY has about 2.5 billion lb's of copper, and that the market cap. is $15 million with an implied takeover valuation of $100 million, you would see some interest.  As it is, you have 70% of the market being traded by technical traders/investors, with another 20% of the market representing people who have no financial or geological background, and are therefore unqualified to quantify the upside CCY, or other juniors, may have.  Spread this over hundreds of juniors and you have a veritable circus as far as junior miners being properly valued.

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