It is quarterly reporting season for many of the junior companies on the ASX and I suspect there will be few companies showing insufficient funds to make...

James Marlay

It is quarterly reporting season for many of the junior companies on the ASX and I suspect there will be few companies showing insufficient funds to make through the next quarter/half year. There has already been early signs of consolidation in the resources sector and capital markets have shown no signs of easing towards the resources market. The reality is many of the juniors won't and shouldn't be allowed to continue in their current incarnations and too much money was raised on the back of terrible assets as a result of the excitement around the resources boom. There are many conversations around the timing of a bounce back, in my opinion we are unlikely to see life at the small end for some time to come and I suspect many retail investors are unlikely to be tempted back for some time.


James Marlay

I have 13 years experience in equity markets and financial media. In 2013 I Co Founded, Livewire Markets with Tom McKay. Our vision is to be the #1 source of investment ideas in Australia. Opinions expressed are my own.

Expertise

resources Australia

Comments

Please sign in to comment on this wire.