As investors in the resource space well know, performing due diligence before putting money down on a company is very important, but not always easy. Indeed, a s
However, what’s perhaps even more difficult for investors is monitoring the companies they’ve chosen to invest in. After all, just because a company was a good investment at one time doesn’t mean it will remain so — any company can hit a bump in the road, and some bumps can mean the difference between success and failure.
Investors can certainly continue to use Rule’s due diligence tips — which include being aware of how much a company’s project(s) will cost and where financing will come from — after they’ve invested in a company. But once an investor has a stake in a company it’s also a good idea to keep an eye on another factor: the activity of other shareholders.
When large shareholders sell
In particular, it’s important for investors to watch what large shareholders are doing. That’s because while large shareholders can be good for a company, they can also be a liability.
That’s exactly what
He explained, “a major institutional shareholder [lost] their mandate, and the manager [was] subsequently … terminated” with the result being that “the fund was forced to liquidate its 19.5-percent shareholding” in
Currently, much-discussed graphite hopeful
At first glance, Zenyatta’s recent update on its Albany graphite project looks to be the cause of the fall. Released on
But could it have prompted enough selling to cause such a significant drop? Interestingly, a closer look at the situation reveals that the answer to that question is “probably not.” So what’s the problem?
Based on information from Canadian Insider, it looks like the issue is protracted selling by
It’s easy to jump to the conclusion that Cliffs is selling because of Zenyatta’s recent project update. But again, a closer look at the situation shows another facet of the story.
Since the beginning of the year, Cliffs has been locked in battle with so-called activist investor
While that’s far from a clear statement about why the company is selling shares of
So what’s an investor to do? For a start, more research. The situation between
More broadly, Zenyatta’s share price decline is a reminder of how important it is for investors to monitor their investments, but at the same time not immediately panic when seemingly bad news hits. After all,
And, for those investors who have done their due diligence but have yet to buy into
Securities Disclosure: I,
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