@jfer3 I have taken a big hit on most of my holdings in the last month. Not sure if its battery mining stocks out of favour at the moment or sell in May and go away tax selling or a combination of both. Like you I am over 50% in the red at the moment on MEI too. However I am holding still as I believe the FA and the new management team with Andrew Tunks and Tony Cormack will deliver and we will see a lot of news flow with MEI once the drillings start and hopefully this will convert into an uptrend in the SP again. Personally I think the big drop down this year has been a combination of the advisors converting and selling their cheap oppies (and I know Dr Tunks has been concerned with this too), the fact that no exploration or work really took place during the Canadian winter so there was minimal news and a general down turn in battery mineral stocks as they got very over heated late last year (when I brought into MEI
) and early this year.
This is just my opinion, so please don't take it as investment advice, but the reasons why I have personally kept holding and still believe MEI will trend upwards again soon include:
- New MD and cobalt expert employed who both have the same vision of cobalt being the priority and want to get drilling started asap as they see that is where shareholder value will be created and a very shareholder friendly MD who is always willing and likes to talk to and hear from shareholders, no mater how big or small they are (I have learnt that good management is a key to investing)
- At a MCap of $18m we are very undervalued at the moment...compare to WFE in the Congo for example which is only a cobalt shell company with no project yet whose at $50m MCap
- MEI has picked up a number of new prospective tenements in a mining friendly country and I believe they look promising from what I have read in the announcements and my general research on the area with some of the highest cobalt grades I have seen announced
- The advisors still have 30m options which they can't convert until the SP has a VWAP of 8c for at least 20 days so I believe at some stage there will be a pump on the SP regardless as I can't see these corporate advisors letting $2.4m drop away from them
- Management have alot of performance shares which don't vest until the SP is greater than 8c, 12c and a MCap over $100m so they have a big incentive which aligned with shareholders too. These milestones for vesting also have a 20 day VWAP associated with them so difficult for them to simply pump and dump to get them vested
- MEI is fully funded for this campaign so no CR on the horizon
- Drilling starts in July and there is a constant program of drilling and surveys for the next year including over the Canadian winter so lots of news flow
Just as a side example, I hold AGY, and have from a low entry price, but even with this stock, which is currently giving me a 500% return and was alot higher at the beginning of the year, I held through almost a year of being in the red 50% as well so I have learnt that while my entry timing might not be the best (I am starting to improve on that now..I hope) , if you truly believe in the FA and management (as I have done with AGY) then as long as you are not trading short term and are more of a longer term investor the rewards can be huge. However, as with any spec stock where there is potentially big rewards there is also big risk so you need to decide what risk/reward level you personally can take and that may mean seeing some big red numbers for a while too.
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