Stock price

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

Comments

  • 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: 359 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: 3,661 Admin
    @mr1 good anaylsis. Agreed!
  • GoldIsCurrencyGoldIsCurrency Posts: 1,762 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: 3,661 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: 359 Bronze ✭✭✭
    > @ike11ike said:
    > How do you guys feel about the new holding?

    @ike11ike
    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

    Summary;
    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: 100 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: 255 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.
  • powslayerpowslayer Posts: 93 Bronze ✭✭✭
    I guess the market is getting tired of waiting for promised events. What happened to goldmoney china being ready for Chinese New Year, Cold blocks by end of 2017, Faster sign up literally any day, NSE listing? Im personally getting tired of waiting too. If management cant meet deadlines I wish they would stop giving them to help reduce the disappointment.
  • GoldIsCurrencyGoldIsCurrency Posts: 1,762 Gold ✭✭✭✭✭
    $3.55 ? It would be heart warming to see an NCIB with some action behind it. Time to start buying back some of that paper that was sold at $4.30. If that is the way some money needs to be made and get Rick no rules short seller under control then get it done.

    $4.30 paper closed 4 month ago. Make 20%+ on some of the money raised in 4 months time when you buy it back at this price and provide your retail investors some confidence.

    Buy back 20,000 shares a week for the next 3 months at this price and not even spend a million. Buy some investor confidence and give this pain in the bleep short seller a wack!
  • powslayerpowslayer Posts: 93 Bronze ✭✭✭
    or spend the necessary time on goldmoney to fix its problems rather than chase other business ventures? Mene customer service is excellent WTF is wrong with goldmoneys?
  • bennettbennett Posts: 3 Tin ✭
    My verification has been pending for two months. Meanwhile, my stock holdings have plummeted 40%. Been one fun ride!
  • powslayerpowslayer Posts: 93 Bronze ✭✭✭
    If the Mene spinoff is still happening and shares will go to shareholders from December 2017. The value of Mene could be taken out of the xau price.... just a thought. I think its more likely that lack of meeting deadlines without reassurance from management is making this an easy short.
  • Lone_StarrLone_Starr Posts: 84 Bronze ✭✭✭
    It's really simple. The price goes down because there are more sellers than buyers. You got to ask yourself, "why did I invest in Goldmoney?" What did the homework tell you? What supported the price you paid and the value you gave the company at the time? If you didn't do your homework maybe you should do that now.
  • powslayerpowslayer Posts: 93 Bronze ✭✭✭
    my homework told me Goldmoney China would be running by the Chinese New Year and Coldblocks would be ready by end of 2017 and new easy verification process would be ready first week of January and im sure the list goes on. Hind sight makes your simple approach very easy @Lone_Starr but when timetables are laid out then missed original homework goes out the window.
  • powslayerpowslayer Posts: 93 Bronze ✭✭✭
    oh yeah and how about that Canadian card, NYSE listing and ACH for holding acounts? I continue to hold in hopes this will all play out as planned but with hindsight its easy to see why there are more sellers than buyers... lol
  • Lone_StarrLone_Starr Posts: 84 Bronze ✭✭✭
    edited February 26
    @powslayer
    Those are all great points. When / if those items are added to the current mix they will add to the current profit of the company. What I mean by homework is looking at what the company has done and is currently doing. Studying the Income / Expense, Cash Flow, and Balance Sheet. Does the company have a moat? What is the CEO doing? Is he increasing his pay and pushing the company into debt? Is he growing the company? How is he getting paid? Etc… By doing that homework and coming up with your own sticker price that you believe the company is worth, will go a long way to removing the anxiety of short term ups and downs by Mr. Market, who is bipolar. Buying on speculation and not understanding the numbers is the #1 cause of losing sleep for company owners. Buying on a foundation of facts will let you rest easy. You also got to ask yourself, are you a trader or are you an owner?
  • PortugueseSeaPortugueseSea Posts: 2 Tin ✭
    Can totally relate to what Lone_Starr is saying. I entered recently at 3.99; the stock's down to 3.48.

    Confident in my homework, my only dilemma is where and by how much to reinforce my position. The company is solid, the model is solid. No amount of shortselling should scare you if you are in for the long run.

    Of course, there are always risks, GoldMoney included, my Gold stocks have been taking a beating, it's hard to see numbers go down, but you just gotta have the nerve. Gold is at a high, the bond and stock bubbles are on the way.

    This is a company I want to own and be a client of.

    PS: I understand the frustration with all the paperwork, it grinds my gears to. Still, lots of it ought to be regulator imposed right?
  • powslayerpowslayer Posts: 93 Bronze ✭✭✭
    This is just brutal. You guys be Ok with your homework and losses. Ive been doing homework and following this company since May 2015.... this freefall in stock price is not ok. Roy is a great salesman and I bought the pitch but when it came time to deliver its disappointment for all invested. Im not happy being a bag holder. February was supposed to be a big month and we get silence. This could be a very long wait.
  • GoldIsCurrencyGoldIsCurrency Posts: 1,762 Gold ✭✭✭✭✭
    Thanks for applying for the NCIB Goldmoney. I for one really appreciate this.

    Muchas Gracious!!!
  • PowerlunchmoneyPowerlunchmoney Posts: 255 Bronze ✭✭✭
    If you're confident in your due diligence, you'd consider this a buy below 4.00. This has been a great buying opportunity in my opinion.

    Also, this is a volatile stock, in a volatile market. Its not for the feint of heart.
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