/biz/ - Business & Finance

>>24326194
>But you don’t have any stake in a “real, tangible asset”. For example Tesla’s profits continue to go down year by year but the “value” of their stock only goes up
I knew I should've added this. What drives the PRICE (note -- NOT value) is demand. And demand doesn't necessarily have anything to do with value, see Bitcoin and other cryptos -- devoid of value but the price keeps pumping up.
>Likewise other companies that are profitable have stock prices that only go down. This complete non-correlation between how well a company is doing, and its current stock price, is self-evidence that stocks have no real world value other than what someone is willing to pay for it
This is true in some cases yet definitely not the rule. Mining companies' shares for example go up in price as the company increases their assets' value (when they come out with great surface sampling/drilling/EM&MAG surveys/acquisitions etc. etc.). The price of stocks can move in illogical ways depending on many things because after all the demand is driven by people who are often illogical. That doesn't mean I don't own a real stake in a real company, it just means that the price that others are willing to pay for my stakes on that company isn't reflective of its true value. In our current clown economy mal-investments can go to the moon while actually valuable traditional investments like mining companies can crab or even go down. Nothing we can do about it but accumulate now while prices are indeed as low as they are!

TL;DR: Value =/= Price, accumulate while you can

>>23398717
>like I said before, they seem to be having issues showing themselves off
I think that's actually a good thing. When they get their mine up and running and keep exploring and coming up with great results people will eventually notice, I think. I hope. When they finally get their recognition the share price will go up.
>Also to answer your question to do with the 43-101 reports, I am mainly reading the geology and resource estimate portions.
I know nothing about geology, I suppose that requires a lot of very specific mining-related knowledge about ore structures and types of rock in the ground. Is there any good condensed source of information I could read up on to learn about that?
>Other than that I am looking for mistakes.
What kind of mistakes?

>>23175443
I look at their current cash situation, total equity, debt and total liabilities. If the debt-to-equity ratio is high (say, over 70% or even over 100%) I tend to be more careful because when the debt bubble pops that leverage could bankrupt the company. Also, even if they don't have debt but they have more liabilities than equity I also tend to be more vary of investing in them. Cash is always great to have, the more cash they have the more hits they can take. Liquidating equities during a bad financial situation isn't optimal so cash is important.

Income and return for investment are unnecessary for an exploration company because they won't be making profits when there isn't any production going on, but a company can have positive cash flow through financing or investments which are worth checking out. For a company in production it's important to look at their OPEX and compare it to the profits they can make with the mined concentrates, and for a company that's planning to open a mine it's important to see their projected CAPEX for starting production, and follow how well they are able to increase production. Remember to read feasibility studies and other related papers companies release, those are important and usually are able to predict how long a project goes on and how long it takes to pay back for your investment. Metal prices affect profits directly.

If I forgot to add something or got something wrong, somebody please correct me. I'm still kinda new at this too