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Thursday, 28 January 2021
Argo Blockchain Plc
Amur Minerals
We are awaiting confirmation that the Bankable Feasibility Study (Aka Definitive Feasibility Study) to be submitted. Further work is required prior to submission, however Amur Minerals intends on having this completed during Q1 of 2021.
Wednesday, 27 January 2021
Eurasia Mining PLC's SP Crash
Alexei Churakov submitted the sale of 27,400,000 ordinary shares worth £0.29 each, valued at a grand total of £7,946,00.00, on 26th January 2021. At 16:02 on 27th January 2021, an RNS confirmed the sale had been processed.
Alexei is still in possession of 12,282,774 ordinary shares.
Why did Alexei Churakov sell 27,400,00 ordinary shares?
Alexei Churakov owns a company called Venus Garden Holdings. 20th November 2017, Venus Garden Holdings subscribed £76,336 for 27,262,814 ordinary shares in Eurasia Mining PLC.
Coincidently, this number is almost identical to the volume of shares sold.
The reason for this may be that the potential buyer of Eurasia does not want another company or subsidiary having any ownership in Eurasia.
Alexei has been able to retain 12,282,774 as these are directly ties with Eurasia and not purchased as a subsidiary.
What caused the share price to drop so quickly?
By Mr Churakov selling a proportion of his holding caused the sale price to drop accordingly. Due to the large volume of shares sold, this triggered a quantity of investors' stop losses. The share price fell from £0.293 at an alarming rate nearly 50%.
Stop losses are automatic triggers to sell a set volume of shares if the sale price was to match or drop less than a stated price. It is an effective way to ensure that you do not lose any more money than you are willing to stake, but it has limitations and as we have seen today, a detrimental effect to the stock market.
With a snow ball effect of stop losses being triggered, the sale price dropped at a lighting speed until finally resting at £0.15.
At 16:25, the share price finally started to crawl upwards from the traumatic dive, but the trading day ceased after two price monitoring extensions at £0.18. Many investors saw the opportunity to purchase in-demand shares at a cheaper than expected price and this has aided the share price from falling any lower.
What do we expect to happen now?
Quite simply, nobody knows.
One opportunity is for the shares to be bought up by those still believing in Eurasia. This is how the share price increased on the final stretch of the trading day.
However, as the news travels of the near 50% loss, many additional sells are expected upon open on 28th January 2021 which has the potential to drive the share price lower.
We do expect Eurasia to be releasing an RNS in response to the sudden drop to ease investors. We all hope that this RNS is released in response to news regarding the sale of Eurasia. The process has been discussed behind closed doors due to a non-disclosure agreement so we know very little about the sale or the parties involved at this time.
We have to remember, that when selling shares, there needs to be a buyer. For any transaction to occur, both parties must exist. What we may be seeing is the first of many transactions to aid the sale process. If this is the situation, then the share price will raise upon the completion of the transaction.
Stop losses are automatic triggers to sell a set volume of shares if the sale price was to match or drop less than a stated price. It is an effective way to ensure that you do not lose any more money than you are willing to stake, but it has limitations and as we have seen today, a detrimental effect to the stock market.
What do we expect to happen now?
One opportunity is for the shares to be bought up by those still believing in Eurasia. This is how the share price increased on the final stretch of the trading day.
Monday, 25 January 2021
Bull & Bear Invest are on Youtube!
Thursday, 21 January 2021
Eurasia Mining (EUA)
Eurasia Mining Plc has been on my radar ever since I began trading. Eurasia (EUA) was one of the very first recommendations given to me and despite being told by everyone to buy in, I watched the price rise whilst I did my research, trying to fathom what makes this company so valuable.
I finally bought a volume of shares at £0.16 after the horse had initially bolted, but I had researched enough to understand how and why this could potentially return such an incredible sum.
Eurasia announced that is is launching a Formal Sale Process under the UK Takeover Code following a "number of inbound expressions of interest from multiple parties interested in acquiring all of or a stake in its assets" on 1st July 2020.
10th August 2020, Eurasia was granted the exploration licence for Typil, a 24.5 km2 area of land with a 17km river course. For those who need to know why the river course is important to gold mining: volcanic action forces the rich earth minerals to the surface. This is then eroded by the running waters and carried down stream where it settles into the banks and creek beds. Over time, rivers change course, leaving the mineral rich creek bed dry and ready for miners.
This in itself was major news, but also provided additional content to include in the sale. This in turn boosts the companies value and the potential increase in the sale price, resulting in a respective share price increase for all those invested when the company sells.
The best analogy I heard to describe this was: "When you sell a house, you make sure your garden is neat and tidy to encourage sellers." This made perfect sense to me.
During the release of the Interim Report on the 30th September 2020, Eurasia Mining Plc confirms that they have restructured the board and executive team in order to fully focus on the sale of the company. Additionally, the state that DLA Piper have been appointed to work on the legal proceedings of the sale.
EUA provide a further RNS on 3rd December 2020 suggesting that they believe that the DFS will be ready for the final approval later in December. Shareholders waited patiently for news, however, nothing materialised. As a result, the share price trickled down at a rapid rate. Leaving the £0.40's and settling within the £0.30 and £0.28 range.
Today, at 10:28hrs, Eurasia released the RNS confirming the approval of the West Kytlim Definitive Feasibility Study. It is understood that this long document is the final piece of the puzzle that could conclude the sale of the company.
We have our fingers crossed for an update on the sale process.
Tip: Build a base of reliable research material and suppliers.
People will often give you tips in which stocks to invest in. Eurasia was a stock that I delayed purchasing because I was sourcing information that I could rely on. If I knew where to look for the information I needed, then I could have bought in whilst the price was significantly cheaper.
Wednesday, 20 January 2021
Rambler (RMM)
Tertiary Minerals Plc
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