Tin 2018, page-71

IMO Fundamentally the markets are depressed because they are in a state of limbo, why? Macro events are constantly taking place across the globe, NKorea, Brexit, Manchester Bombings, Trump etc and of the problems in our own back yard. I also think the placement was a strategic error on SRZ's part.

Large sophisticated investors, many funds (Read SMH today) and even banks are selling off securities because they are speculating the market is inflated because of low interest rates and too risky for a couple of reasons. Reason's abroad are the ones mentioned above, reasons in our backyard is the Eastern house prices and the belief that a bubble is about to burst on the Sydney property market. If this happens, the banks will really be up sheet creek.

So whilst the results are really really good for SRZ and the news was extremely positive, the mums and dads and the sophisticated market is too unsure and bearish. In a market where property bubbles might burst, smart sophisticated investors will generally pull their securities and sell them off for cash, as cash is king in a recession.

If the property market does crash, they will then have the opportunity to buy depressed assets at great prices and make a whole heap of money when the turn around happens. I know I will personally be selling off half of my portfolio, believing that the property market will crash and giving me a good opportunity to buy a house I want, in a suburb and street I want.

Also if the property market does crash it will have a negative economic flow on affect to the stock market as a recession will likely follow, just as the GFC in America, albeit smaller.

However, the good news is Tin is one of the materials that is in high demand and has low global supply. So buy whilst its low, I think I will be quite the bull on this stock depending on cash flow after my own drilling and exploration activity costs.

This is all speculative and my opinion, I believe SRZ is an absolute gift and bargain at these prices, however IMO I also believe they need some strategic help and or direction to start generating value for their shareholders.