RE:RE:RE:Lessons 4 all 1st Republic stock crashed 90% since Cramer.. Thanks cents appreciate the response. I do note that most of what you say applies to the larger economy as a whole "macro economics" and not specific to Sherritt.
1) I would like to point out that Sherritt has been upfront in stating that they are not using debt to fund their expansion. All the financing is coming from their cash flow. And to be honest I'm not really sure if they could raise more debt if they needed to.
2) Yes higher value US dollars causes commodities prices to go down relative to US dollar but not may not affect the realized price of the money goes to a country that has had its currency devalued as well relative to the US dollar (ie CAD). Salaries and costs paid out in CAD would be lower. Ongoing costs for operations would also likely be lower.
3) Yes a market slow down or recession will affect Sherritt. It will also affect everything else as well so it's not really a point that is specific to Sherritt. I guess one may ask if it will survive or not... I've heard everything from deepest recession the world as ever seen "sky is falling" to "soft landing". How to see through the fear? The important thing to remember is that time and time again the US acts to save the market. Whether it's interest rates close to 0% or negative rates or quantitative easing.. so I wouldn't sell a downturn... it's the people who work themselves into a position where they have no choice but to sell into the downturn to cover their expenses. Those people are fools and their lunch will be eaten.
As for the other macro points.. it's important to remember that over half the world still lives in poverty. So the demand destruction due to aging in 1st world countries isn't something I see materializing.
As we all know nickel is a metal that is used in a lot more than just batteries, and there is a market for high grade nickel in things other than Li batteries. Some examples are hydrogen fuel cells, high grade industrial stainless steel (inconel), aircraft parts, rocket parts for Elon's space ventures. The world is now waking up to the split in quality between low grade and high grade nickel. And the majority of the growth in supply has been the low grade. And to upgrade it is very expensive and carbon intensive.
With all that said your point is taken. The Sherritt stock is highly volatile, frequently has low volume days and should not been seen as store of wealth or secure investment. I would hope anybody invested in it today appreciates all the risk involved.
Pretty sure the Cuba and US relations is priced into the stock considering the Helms Burton Act was acted upon 4 years ago. Not sure how much worse things could go from here, other than Cuba declaring war with US, so really I think there's a better chance for things to improve. Short term most likely thing is they just stay the same. Long term is that tensions ease.
Good to know you have shares so obviously it's not all doom and gloom for you. (To hold shares you must have some positive notions regarding the companies outlook, no?)
I don't think people are all sky is blue mentality on this board. Most are investors and in it for the long haul.
I would like to here why you hold bought and hold shares in Sherrit and what are the upsides you see. Short term and long term.
Thanks