Spent some time looking at company flings and news releases
First, based on the chart and EV momentum in the markets, the stock is likely to keep rising imo
Here is where I digress from what could possibly happen with the stock price long term and stay with charts for risk tolerance principles
1. Company mcap is only 23mil, seems questionable if they are sitting on 1Bil+ of lithium reserves, yes, I get they do not have the cash required to fund the mining operation reported $493 million and that's part of investment risk in the world of resource exploration with big returns possible, but if they are able to fund the mining operation, what will the terms be, royalty payments? something else? how much value will this add to the stock even if the own 100% of Clayton lithium rights, how much dilution?
2. It's a Canadian company with reported 1mil in cash and 3+mil is Clayton assets and other tangibles, they do not report SEC regulated Quarterly or Annual reports, is it simply because the costs?
3. OTC website reports a float of 78,807,674 a/o 05/25/2020, whereas OTC filing reports a float of 85,073,992 a/o June 8, 2020, so approx 6.8mil shares moved from restricted to unrestricted recently?, are warrant holders selling already? the filings have a continuous history of issuing warrants to fund these exploratory projects
4. OTC reports
Authorized Shares Unlimited
Par Value - No Par Value
5.
May 19th 2020 PR, can we expect more warrants to be issued for below?
The PFS report supports further work on the project with the recommendation to conduct a pilot plant study prior to initiating a feasibility study and permitting. Cost of the program is estimated to be US$6.75 million. Cypress is continuing testing and planning in preparation for the pilot plant, has begun baseline environmental studies, and is engaged in sourcing funds for the further studies
I do not know if the stock is going to 20 dollars or back to 15 cents, but before committing to a long term investment vs. trading the stock, it would be helpful for anyone with mining stock expertise to alleviate any of the concerns I've laid out, I know nothing about the mining industry, but like anyone else want to invest in opportunities w/o getting into false hopes generated by media or retail frenzy
Where am I wrong?
