[On :freetrade:] Sirius Minerals - SXX 👾

I only ask as I managed to buy another batch at the low price this morning. It’s a knee jerk gamble but if it tanks the losses are covered elsewhere.
I don’t think it’s over yet for Sirius and I do suspect there is some underhand corporate strategy going on somewhere and it’ll all end up ok :crossed_fingers::man_shrugging:t2:

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I agree, especially with all the hiring they are doing

I don’t have any involvement with the stock, but quite interesting this morning to watch the selling and buying frenzy which is taking place. - https://www.lse.co.uk/ShareTrades.asp?shareprice=SXX&share=Sirius-Minerals

This thread is an alarming example of how people try to bend everything in order to support their views. SXX could declare bankruptcy and people here would still throw their money at it because they cannot fathom that this is a shitty investment and that they made a mistake.

If someone wants to make money through investing, a realistic view is crucial. Everybody makes wrong decisions, don’t continue throwing money at it to save face.

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Oh you haven’t seen the LSE chat right now, just had a glance right now and…sheesh…those poor pensions!

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So many pages of comments on there from today’s news.
I hope that the people posting on the LSE forum are not being serious when they say they had their pension invested in such a risky project. I’m feeling really bad for them.

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I got my shares back in march, 20p a share. Then it raised to 25p and I thought I was a genius. Luckily I don’t invest heavily in minerals and futures.

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Some very sad posts around on these forums. If it’s true one poster says he put his150k pension into a SIPP and then bought SXX. Others says they remortgaged to buy shares out family fortunes in.

Please everyone on here:
Life is better than money. No matter your loss.
Dont break the golden rules you know to be true when investing. Any company can go bust. That includes Apple or Amazon. This was such a high risk company. Dont lose sight of the principle rules of investing. Dont invest what you cant afford to lose and diversify!

I once invested 20% which was 3 figures back then of my portfolio in a stock. It went bust and it hurt. I learned loads from it. So learn from it. Penny stocks are gambles. Keep it to a flutter. If you’ve made a loss imagine you had invested more. If you make a profit dont regret hindsight. Just because you hit success doesnt justify reckless investing.

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There’s always a lot of hope and despair on that forum. So I had a quick look into their post history and unfortunately I think it might be true :grimacing:

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I avoided investing not because I thought it would go bust but because I foresaw based on past history of SXX as well as what often happens with exploration companies a constant dilution of capital. For something that hadnt made a single penny in sales I’m so baffled why so many people saw that it would go into profit any time soon. I argued this on this thread months ago if you wish to look. I think I said Imagine at 20p it makes a 100% profit in 5 years and that’s a big if but you could make close to that by investing in the S&P500 for almost the lowest risk there is.

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I’d normally argue against government stepping in but I think there’s a genuine case here. We’re talking about possibly tens of thousands of individual investors losing significant chunks of their pensions, and a loan guarantee that could easily make up for itself with just tax revenue after a few years. The only reason this isn’t being considered is it’s a project outside of the SE that hasn’t turned over anything yet, otherwise it would get slapped with a subsidy instantly. Management is incompetent but this seems to me like the most common sense way of minimising the impact of that.

Compared to total UK population the % losing a large amount is tiny. Socialising their losses mean I should also be able to bet on a company and get a refund from tax payers if it doesn’t pay off

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I’d normally argue against government stepping in but I think there’s a genuine case here. We’re talking about possibly tens of thousands of individual investors losing significant chunks of their pensions, and a loan guarantee that could easily make up for itself with just tax revenue after a few years.

No. :angry:

It was on them that they made a wrong investment choice. At this point in time, everyone and their dog knows that they should diversify. They went all in either in stupidity or in greed. Why should I pay for their stupidity or greed?

Otherwise, then we should also be able to go all in in extremely risky projects and be bailed out if they fail, but not otherwise share the upside.

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Sad but true. If people are so stupid as to drop £150k (and that is all their savings) into one project period then they deserve what comes to them. Unless it is literally £150k on a house you are being wilfully reckless and the government is not here to save every idiot no matter how well intentioned or how much they lost.

There could be an argument that the UK Government could step in with a loan to protect jobs in the region, future tax revenues, etc. However, in the current climate I can’t see this being a priority for them.

If I had to guess, I’d say that either a big Australian mining company or possibly a Chinese state linked company will step in at the last possible minute and pick up the company for pennies on the pound. I’m sorry to say it, but I really don’t see this ending well for the existing shareholders. :frowning:

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It’s definitely does not look good. This is actually the most risky stock on my portfolio and I am glad that I did not invest so much. Like everyone else I am hoping that someone would step in and turn everything around.

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The company still has a market cap of ~£330M and cash of £180M. I still think the valuation is too high.

You know your stocks doing badly when they talk about it on the news on the drive home

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I wonder what Norway thinks.

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I’m genuinely saddened by the comments on here labelling people as “stupid”. A lot of elderly men and women who live locally have poured their savings and pensions into this project. They’ve tried to support a local project and may end up losing everything. That doesn’t make them stupid. It means they didn’t seek or receive good financial advice. For many it will have been their first and only foray into the investment arena.

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