Stock price

IamagolgbugIamagolgbug Posts: 23 Tin ✭
How does a company grow and grow yet the stock price remains lethargic ?


  • ike11ikeike11ike Posts: 151 Bronze ✭✭✭
    The market is not efficient. Stock prices rarely reflect true value. Investor behavior, emotion, and sentiment determine the price in the short term. Long term value is almost always truly recognized.
  • mr1mr1 Posts: 358 Bronze ✭✭✭
    edited May 2017
    The Market Capitalization (# of shares * price per share) is basically the market's representation of the value of that company. And a company's value is more or less the Assets-Liabilities+expected Net Present Value of all future cashflows. Company "growth" (i.e. more users) may not necessarily correspond to an increase in company value. The price of a stock like Goldmoney is highly dependent on expectations of user growth and how profitable those users are. Different projections of user growth rates could give vastly different valuations for the company. So just because the company is growing doesn't mean the stock price should go up. Growth expectations have always been baked into the stock price and so if actual growth rates aren't meeting up to previous high expectations (or if new users are not as profitable as expected), then the stock price can go down even though the company may have had some "growth".

    Also, as @ike11ike says, markets are not completely efficient, and maybe some investors are just to biased against gold or skeptical of the Goldmoney's potential, despite its "growth". It could be that Goldmoney is just undervalued right now, and it is a good time to buy.
  • GoldmattersGoldmatters Posts: 3,630 Admin
    @mr1 good anaylsis. Agreed!
  • GoldIsCurrencyGoldIsCurrency Posts: 1,752 Gold ✭✭✭✭✭
    Good analysis @mr1

    Nice to see some upwards momentum today. Thanks to whomever that was on the buying spree.
  • GMONEY1GMONEY1 Posts: 424 Silver ✭✭✭✭
    just a quick EMA update here:

    XAU currently trading around 3.16. EMA500 is 4.14 ... so if you have a longer term scope, technically, there is about a dollar discount in the stock right now... just based on EMAs. That said, EMA50 is still less than EMA90, and EMA90 is still less than EMA200 (daily). So if front-weighted price action is important to you to make short term decisions... there you go. EMAs converging ever so slowly (i.e. in a deliberate manner...still).
  • ike11ikeike11ike Posts: 151 Bronze ✭✭✭
    @GMONEY1 Still haven't bought any shares. Been burned on very long term bets in the past.
  • BigMouseBigMouse Posts: 81 Copper ✭✭
    edited May 2017
    @GMONEY1 thanks for the EMA analysis. Just bought shares this morning at $3.15. Prepared to buy more if it goes below $3.00.
  • ike11ikeike11ike Posts: 151 Bronze ✭✭✭
    @GMONEY1 @Goldmatters @GoldIsCurrency How goes it? Haven't been around for several months? How do you guys feel about the new holding?
  • GoldmattersGoldmatters Posts: 3,630 Admin
    edited January 9
    Great to see you back @ike11ike ! I think you find varying opinions here but I happen to like the new Holding. For me, its a huge advantage to be able to buy silver, platinum, palladium, even bitcoin through your holding.

    Some people have had issues with verfication but from what I understand there are major improvements coming in that regard in the not too distant future.

    Welcome back!
  • mr1mr1 Posts: 358 Bronze ✭✭✭
    > @ike11ike said:
    > How do you guys feel about the new holding?

    I know you didn't ask me, but here's my 2 cents on the Holdings:
    Main advantages compared to personal accouts:
    -can hold multiple metals
    -can hold bitcoin
    -can hold multiple fiat currencies
    -has access to phone support
    -no 1kg limit on gold

    Main disadvantages:
    -ACH transfers still not availabe
    -no online method for redeeming to physical gold products. Have to call schiffgold
    -no 1kg of free gold storage like personal accounts
    -customer service issues seem to be getting somewhat better but still lots of complaints of CS not responding, or doing so very slowly
    -sign up process also seems to be improving, but many countries still require snail mail
    -debit card not as easy and cost effective for spending gold. Have to first pay sell fee to sell gold to put fiat in your holding, then pay another fee to load the fiat on the card
    -business tools still haven't been implemented

    IMHO, the holdings are fantastic in many ways, but they are still inferior to the old personal accounts in some ways. I still cannot understand why they chose to move to a unified holding before it at least had all the functionality of the old personal accounts. It created a huge mess in the beginning that turned off a lot of new users and could have been avoided by just allowing the personal accounts to stay open to new users alongside the holdings, until the holdings are ready to be the unified holding that was promised. They've come a long way but still have a lot of room for improvement.
  • TheRaveneerTheRaveneer Posts: 98 Bronze ✭✭✭
    You guys still bickering over Personal and Holding accounts? A few more months have gone by... I'm certainly not doing anything with my Personal account any time soon. Any CAD card yet? I'm good with my savings account and no fees while watching my stock investment shoot higher.
  • FutureFuture Posts: 6 Tin ✭
    Anybody an idea what happend yesterday? Almost an bloodbath :-(
    what is bothering me more is the huge volume...

    Stop losses which got triggered? or did i missed some bad news about goldmoney?
  • LGJLGJ Posts: 50 Copper ✭✭
    @Future I think that the sudden rise in stock price months ago was directly related to the meteoric rise of the price of bitcoin. The market saw a relationship between Goldmoney and bitcoin and invested in the company, just like we have seen with other bitcoin related companies. When the price of bitcoin began to fall over the last few days, the stock price echoed that move.

    I invested in Goldmoney to show my support for the model that Josh and Roy were building. Frankly, their heavy involvement in bitcoin has made me wary.

    As far as the accounts go, I am sticking with the personal account as long as they let me. Unless I see similar innovations, ease of use, and sense of vision that I saw early on with bitgold, I won't likely move my gold to a holding account.
  • PowerlunchmoneyPowerlunchmoney Posts: 246 Bronze ✭✭✭
    @mr1 thanks that was an informative post. @LGJ hit the nail on the head here:

    As far as the accounts go, I am sticking with the personal account as long as they let me. Unless I see similar innovations, ease of use, and sense of vision that I saw early on with bitgold, I won't likely move my gold to a holding account.

    I'm going to need ACH and a card to get me to switch over.
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