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Sirius Minerals share price: is it a zero?

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@wjw22,

The smart money would have shorted this since August 2018. It has been a short since. The question now is whether there is more downside, a potential revival and rally or prolonged sideways action. 

You state the company is about to run out of money by the end of Q2 2019. Is there any chance of further investment being made in the company? Could further capital be injected into the business? 

What about the fundamentals of the company? Are they strong, weak or thin air?

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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."

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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.

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@cryptotrader,

The price started its recent strong decline from August 2018.

I do not follow the stock nor have I ever invested or traded it. Therefore I am not familiar with the fundamentals. 

These shares are great when Commodities are on a super bull run. They attracts a lot of speculative capital. They become leverage play on Commodities. 

@wjw22,

By the time you establish there is no chance of further capital the so called smarter money have already shorted it and driven the price down. Just be careful that you are not the last one to join the shorting/selling party.

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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 by wjw22

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