Loading ...Imagine Owning Gowest Gold And Trying To Stomach The 76% Share Price Drop
Well, imagine another 49% TODAY! (8/9/2019)
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Even the best investor on earth makes unsuccessful investments. But it should be a priority to avoid stomach churning catastrophes, wherever possible. We wouldn’t blame Gowest Gold Ltd (CVE:GWA) shareholders if they were still in shock after the stock dropped like a lead balloon, down 76% in just one year. A loss like this is a stark reminder that portfolio diversification is important. To make matters worse, the returns over three years have also been really disappointing (the share price is 63% lower than three years ago). On top of that, the share price has dropped a further 25% in a month.
View our latest analysis for Gowest Gold
Gowest Gold didn’t have any revenue in the last year, so it’s fair to say it doesn’t yet have a proven product (or at least not one people are paying for). You have to wonder why venture capitalists aren’t funding it. So it seems that the investors more focused on would could be, than paying attention to the current revenues (or lack thereof). For example, investors may be hoping that Gowest Gold finds some valuable resources, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered high risk. The is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). Gowest Gold has already given some investors a taste of the bitter losses that high risk investing can cause.
Gowest Gold had net debt of CA$23,056,293 when it last reported in July 2018, according to our data. That makes it extremely high risk, in our view. But since the share price has dived -76% in the last year, it looks like some investors think it’s time to abandon ship, so to speak. You can click on the image below to see (in greater detail) how Gowest Gold’s cash and debt levels have changed over time.
Guess its time for a share consolidation and a renaming to GoSouth.
LOL!
Yeah, yeah, yeah. I learned my lesson the hard way – lost a TON on Spocks rocks in 2016. The ride up was wonderful, the ride down was crushing. Yes, you can make some leveraged coin in these ultra-juniors but you can also lose your shirt. Give me someone with proven resources in the ground, either in production or on the way, or a great buyout candidate. No more of the slot machines for this goldbug.
I had a horrible time selling it. It took me weeks to get rid of it. I have too many of these nano-caps gone sour, too much trash. For the past year I’ve been trying to take out the trash and neglected to attend to GWA until May. I forgot what tipped me off. It was either that I saw that it was having a reverse split (a useful suggestion to consider selling ASAP) or that a Chinese group had a huge interest at a time when there was big tension over the Huwai stuff. Whichever it was, then I took notice of the other reason.
Since Fidelity doesn’t allow me, in the U.S., to have GTC orders in Canada, I had to use the OTC. I think I had a sell order in for a long time that didn’t go through, but I forget. If so I had to cancel it and replace it with one with a lower asking price. It took about 3 weeks to get executed. All the while the quoted prices I’d see seemed to show trades above my asking price, as if there were no problems in the way it was trading. (This was not the only garbage stock I had this problem with when taking the trash out.)
You need to pay a lot of attention to these tiny stocks. I didn’t in this case until it was almost too late, and by that time it had already sunk very low. If you own them you need to own a lot of them is the trouble–ideally at least a couple of dozen. If you pay some service to recommend them, that person should be following this stuff for you. I only happened upon the bad news. The subscription service certainly did not.
Is still a hold coffee can stock. I forgot about this one. Ouch!!
This stock reverse split recently. Whenvever these micro reverse split time to get out the stop getting more losses. From split price they can now go further to almost 1 cent. These never recover even when micro juniors sector is rocking. There is a grave yard of these
from 2003 to 2008 I can name for the members.
Hopefully if few of them survive and goes up 10000% that should make up the loss in others.
“There is a grave yard of these from 2003 to 2008 I can name for the members.”
I can’t remember too many. But I got out in 2006, including from Midas noted today back at about $5.
BUT … my charting setup for CA miner issues used to have 1300 different symbols in it.
Now its down to about 400 or so. The rest have delisted or downlisted to OTC, etc.
Although I don’t go out looking hard for new listings. So I’m missing a few that have come on board, especially if on Venture.