On each occasion Spanish potash development company Highfield Resources has recently released good news, including today, the share price has fallen
On each occasion Spanish potash development company Highfield Resources has recently released good news, including today, the share price has fallen. This is a not uncommon tell-tale sign of market fatigue. The company is losing the ability to surprise. That is no criticism of a management doing the right things; just the reality of market dynamics in the absence of a fresh flow of shareholders. The May 2014 PortfolioDirect rating report on Highfield Resources suggested investors wait for a completed funding round before making an investment commitment but cautioned that, beyond a completed capital raising, it was hard to foresee another catalyst for a re-pricing. With an investment return already well within the top 10% of those available in the sector, the report concluded that the risk of returns subsequently drifting back toward average outcomes had risen. After the company raised money in mid June, the share price rose 49% but has since declined by 20% and is now unchanged from mid-May.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
No areas of expertise