Sirius Minerals share price: is it a zero?

[wjw22]

https://www.ig.com/uk/investments/news/share-dealing/2019/04/15/sirius-minerals-share-price--is-it-a-zero-

Sirius is due to run out of money by the end of Q2 2019.  I went short at 19.79 and was almost stopped out when the price spiked to 27!  I think it'll go into administration in the next few weeks though.

[trade247]

43 minutes ago, TrendFollower said:

The smart money would have shorted this since August 2018.

what specifically happened in August 2018 to make it a "smart" move to short then?

Just going through that article @wjw22 and this bit stood out "The project has been running since 2010 but remains in its development phase and is yet to generate a single pound of revenue"

That's absolutely mental. You always hear about a lack of profitability, but a 9 year old company which hasn't even seen a lick of REVENUE. That seems crazy to me. However with that said they're looking at a lifetime mining value of 100 years. Could be a good keeper if things pan out the right way.

This also certainly isn't for the faint of hearted "Since 2009, the share price has fallen more than 50% from its previous peak five times. This illustrates the speculative nature of the stock, which is a widely held by individual investors in the hope that its lottery ticket style attributes could see them win big."

[wjw22]

Sirius was a commodities boom play.  The numbers almost worked - high commodity prices and cheap finances and it would be a goer, but neither lasted.  There have been a number of share price spikes since then though, which is why I have waited until I think there's no chance of further capital injection.

[wjw22]

6 hours ago, TrendFollower said:

Just be careful that you are not the last one to join the shorting/selling party.

I must admit I don't know what happens to a spread bet if a share is delisted.

Edit:

Here's the answer:

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/market-details/what-happens-if-the-stock-i-am-trading-delists

Edited April 16, 2019 by wjw22

[wjw22]

https://www.fool.co.uk/investing/2019/04/30/sirius-minerals-share-price-falls-on-funding-deal-this-is-what-id-do-now/

It appears Sirius is going to limp on for a little longer.  I'm going to close my position tomorrow if I'm still in profit.