What's the only thing worse than losing money? Losing OTHER people's money!
Wait, that's not true, right? Lots of people don't give two "you know what's" about other people making or losing money. But I do!
I am on record "strongly suggesting" (*NOTE - I am NOT a financial advisor!) buying Sarama Resources (SWA on the TSXV) shares almost a year ago, when it was trading at 0.12-0.13 CAD. It's now trading at...a measly 5 Canadian cents! Ok, that's not really losing other people's money. But I think you know what I'm getting at. And it sucks to think about it! :(
I sold a bunch of my shares before the drop. And I do feel kind of bad about not disclosing it at the time (though my youtube disclosures always say "MiningBookGuy does not have any relationship with the company, and may buy or sell shares at any time in the future"). Why didn't I tell the world about my selling compared to my buying? Well, there's an inherent conflict of interest for one. I was worried about lack of liquidity (a problem with all tiny juniors), and I wasn't completely sure SWA was going to drop. But at some point in the middle of 2018, things didn't look right to me, at least for the short-term. So I quietly sold a bunch of shares.
Why focus on this for my silly little article? Because even if I do feel bad about it, it kind of amazes me how so many people in the junior industry get paid in cash, paid in shares or options (sometimes super cheap ones!), just to pump a stock...and they go into it without believing at all in the company. Yes, I used both "stock" and "company" in that last sentence. I think of these little juniors as companies rather than stocks (well, most of the time). This is not always the right thing to do. But what I LOVE is that I can participate in helping the company to do "just a little better'" especially in areas where I know they struggle, and I tend to thrive. Shameless plug: CEO.CA is the #1 platform helping me to do this :P
With SWA, it's been an ongoing battle to create interest with retail shareholders like myself. Yet I see a surprising amount of interested people pop-up recently at CEO.CA and Twitter (many shout-outs given in my video). I guess I just want to go on record saying that I really DO believe in this company right now, at this price. "Simplifying the Story" is the right thing to do, and I'm on the same page as management in this regard. Even if I'm wrong (again!), you can at least be assured that my relationship with SWA (and any other companies I "promote", for that matter) is exactly the same as every typical retail investor: I'm an outsider, just trying to do my best to independently improve the share price in a little company I believe in!
For safe measure, you shouldn't just believe me on that. But please do check out my video by clicking this link, or the image at the top of this article. And maybe you'll consider joining me in this little crusade! =)
Share Price as of the open, January 28th, 2019: 0.05 CAD
Market Cap at 0.05 CAD Share Price: ~$9.1M CAD
Shares Outstanding: 181,710,402
Fully Diluted Shares Outstanding: 205,730,402 (see notes on p. 4 of the new powerpoint)
Fully Diluted Market Cap at 0.05 CAD share price: ~$10.3M CAD
*DISCLOSURE: MiningBookGuy owns shares in Sarama Resources (SWA on the TSXV), and much of the information is biased. MiningBookGuy does not have any relationship with the company, and may buy or sell shares at any time in the future. MiningBookGuy is not a registered investment advisor and advises you to do your own due diligence (DYODD) with a licensed investment advisor prior to making any investment decisions. This company is highly speculative and not suitable for all investors. Any errors are mine and mine alone.