Serra Energy Metals Corp C.SEEM

RE:RE:RE:RE:Discount

[AlwaysLong683]

Hope4Best779 wrote: My advantage as a retail investor is that I don't move markets when I buy. Sprott moves markets when he buys (his disadvantage) he has other advatages ie more contacts, etc.This deal took my advantage away as his buying now didn't move the narket but also was at a discount. In actuality he should be paying more because he is buying more,  as his purchases would move the price higher substantially. Took my advantage away. not right to do that in rising share price after good drill results.

Hope4Best, your "advantage" was taken away the moment the stock was halted a week ago.

If you discovered ESNR before that time and liked their prospects, you could have bought as many shares as you wanted between 0.30 and 0.40 any time in the past three months prior to last Thursday.

The assay results press release was released Monday at 9am.

The trading halt was lifted at 9:46am, so even if you were tracking the shares before last Thursday but didn't buy any or you happened to discover the news immediately through sheer luck, you had about 45 minutes to put a bid in for shares between the time the press release was issued and the lifting of the trading halt.

Once the stock resumed trading, it shot up like a rocket, so if you put in a limit purchase order at too low a price, it likely would not have been filled, and before you could blink, the stock was at 0.90 (or 0.10 less that Sprott bought it at) - I believe Warlockkk got it at around this price, maybe by placing an order to buy at market.....?

Re. Sprott getting shares at 1.00:

ESNR needs money to continue drilling, and will need more and more money as they continue drilling operations. Every junior gold exploration-stage company I am aware of uses equity raises to fund operations because they earn no revenue from gold until they start pouring and selling it, and the interest rates they would have to pay IF a bank was willing to take on the risk of lending to a company that may never make money would be very high. Thus, if a wealthy shareholder / entity is willing to purchase millions of dollars in shares, they usually get a discount to compensate them for taking on risk that there may never be a mine or gold revenue when investing such a large sum.

Like I stated in another post, because the deal happened the next day, I suspect Sprott and ESNR may have been in touch before the assay results came in with Sprott stating he would invest pending acceptable results, so Sprott was probably both aware of and interested in investing in ESNR before you or I were.

The stock closed Monday at 1.26, so if you read Warlockkk's post on the NFG BB and bought shares at around this price on the day of the assay results news release (say at what would eventually be the 1.26 closing price for the day), you would have been up just over 7% one day later AFTER the Sprott announcement, as the stock closed at 1.35 Tuesday which happened to be a down day for other junior gold exploration stocks:

NFG     down 6.80%
LAB      down 5.48%
NFLD   down 7.07%
SIC      down 4.69%

So it appears that the Sprott deal was viewed by the market as a net positive for ESNR.