CST 0.00% 8.3¢ castile resources ltd

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  1. 1,416 Posts.
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    The frustration for some stems from the fact that CST is a fairly average investment.

    Iam hoping CST will be a strong finisher but for long time holders its been money tied up not working.

    In saying that its been a differcult assignment for the company.

    Example above of a shutdown from home base.

    Why is CST a fairly average investment?
    what makes it fairly average?
    because you overpaid for the stock before?

    Remember there are two ingredients to profiting from a share investment:
    1) Get the company right
    2) Get the share price right.

    Did your research get the company right but not the buy in price?

    Dont confuse share price with value. You mentioned money being tied up. You should be shutting your mind off from the share price and concentrate on the fundamentals.

    The headache with biotech companies is there long lead time to commercial production. During this lead time its actually very hard to 'value' the company. Mr Market is fickle at the best of times. Where valuation is harder to measure, Mr Markets mood swings will be wider as the market goes through phases of euphoria and depression.

    But remember once the commercial production phase kicks in, profit can expand rapidly from a small base.

    For the record i should state I'm not very technical when it comes to biotech, thats why i prefer to wait until things start or are about to start their commercial phases.
    I then try to hedge my risk by buying multiple stocks and limiting each stock to only a small % of the total portfolio.

    Upside on these stocks can be HUGE, but they are very risky, and are generally one trick ponies.
 
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