I find it helpful to post early on a potential investment for several reasons.
Why?
1. It can give you instant feedback from other investors
Red flags. If trusted community members point out red flags this can save you serious DD time. Example: Check the CEO’s dubious track record & cheap seed shares, the PEA assumptions are unrealistic & fails to mention the met complexity. Next name, please.
Next up, you have “Concerns“, these again are appreciated. They give you a specific angle to check, look deeper than your normal due diligence & a good question if you’re approaching mgmt. directly. In short, it can give you a reason why others are avoiding it (justifiable or not, that’s up to you to check) & give you some direction in your search for ‘weak points’ to build up your needed conviction and ask mgmt. how they will mitigate this risk as best as possible. All in all, this is very valuable feedback!
Don’t shy away from basic questions, but also don’t ask things you could have found online after some reading.
If your own interactions are low on social media, head over to the current discussions regarding your company of interest (use the tickers & tags) and pick up from there, especially on news days.
2. It can spark new connections and private conversations
Is there a crew of believers or are you one of the few? Knowing some good fellows interested in the story, I check the profiles of others who like/retweet company-specific posts. Sometimes followed by a direct message (DM) to ask their more elaborated view on the company. You would be amazed how many insiders, C-suites, analysts, GEO’s, bankers, sector nerds (often overlaps) , etc. are hiding behind anonymous handles. Using twitter to read, not to post. But happy to share their thoughts privately when asked for. After all, most like it when others show a genuine interest.
3. Build your credibility (or not)
Post disappear in the masses. Hence the importance of proper tagging & repetition.
If the IRR > 50% and NPV is 10x the market cap, I want to hear about it! If a company drills 100m at 10g/t gold, spread it! I don’t want you to kill the market’s interest with pushy promotion, but nothing wrong with creating visibility in the right way.
A typical tweet will reach half the value of its total engagement within the first 16 minutes after it was posted
You wake up in New Zealand or Ireland, you want to be able to find the same relevant information. Looking up specific hashtags is the way to go. For this to be possible, the posters need to follow some unwritten hashtag rules. Smart marketers create and share their own hashtags… #PDAC2020 #TheBigBosnian #Gotgold #Nickel #JamesBay
“You can’t tell till you bet” – Pat Hearne
For me personally, it also timestamps my initial serious interest. It builds a more credible & continuous feed. Example: I believe most (that follow me) can name 3-5 names I like.
The other way around, I know who I need to reach out to for stock A,B & C when important news hit.
The same goes for other platforms. One example of an older post on CEO.CA (MAI.v at 10c);
Expand your reach
I underestimated the power of a global network. Filled with people born/living/working in every country of the world, this creates an unique information flow . What is only becoming apparent to some today has been signaled on my feed days/weeks before (insert COVID19). Not only that, locals share their critical view – or at least a more balanced view – on what is reported by mainstream media (MSM).
One additional tip: When time-stressed, hit the ‘bookmark‘ button so you can catch up at a later moment with good articles/videos/threads.
See you online,
Cheers, Pete
