It still looks as though Sirius Minerals (LON:SXX) is a situation which continues to fire the imagination of private investors and beyond.
The lesson which has become clear to me at the relatively late age of 50 is that the only resources companies which are really worth getting on the back of are those who are actually producing. This means one gets away from all the risk of jam tomorrow and thousands of ounces here, and billions of barrels there. Indeed, it is surprising that the management of such blue sky situations can raise the vast sums that they do ahead of anything being recovered from the ground.
However, there are exceptions that prove the rule. In the case of Yorkshire focused would-be Potash miner Sirius Minerals, we have a stock market darling whose latest move to the main board of the London Stock Exchange seems only to have enhanced the company’s reputation. Today’s news, which has initially boosted the stock, centres on the issue of 19.5 million shares off the back of the conversion of 30 convertible bonds.
From a charting perspective it can be seen how we have seen progress within a rising trend channel which can be drawn from as long ago as March last year. While there may be an initial dip for the stock back towards the 10 day moving average at 29.9p, the upside here could be as great as a 60p target, on a timeframe of 3-4 months.