Helium One Global Share Price Forecast August 2021 – Time to Buy HE1?

Investors usually forget that maintaining their upper hand in the share market is just as important for a successful experience as finding the right opportunities. The ever-changing market conditions constantly shuffle the list of top gainers every 10 minutes (during peak hours). Expert advice is to never lose sight of a profitable investment whenever it presents itself. This is why in this article, we shall discuss Helium One Global Ltd. As such an investment opportunity.

Helium One Global Technical Analysis

This Tanzania-based company deals in the industrial metals & mining industry. As the name suggests, Helium One Global mainly handles the exploration and production of Helium gas that is used in sectors like aerospace, medical, and technology to serve various purposes. This company was established back in 2015 and today it has extended its presence to be one of the top gainers for this month through constantly rising share prices.

Helium One Global is listed on the London Stock Exchange under the ticker code HE1. Currently, its total market capitalisation is £89.863 million. The share closed trading yesterday by the end of the day at £14.60 with an uptrend of around 26.96%. A glance at the company’s balance sheet shows that it has significantly reduced its debts to assets figures in the past two years.

When you look at the technical indicators of HE1, you notice that the recommended price action is “Strong Buy”. This is due to the fact that the company shares have managed to pick up the pace and are now rising with other top gainers. Every dependable moving average such as EMA (14.69), SMA (14.74), and Momentum (0.58) indicates a Buy action so that investors could make the most out of HE1.

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Recent developments

Perhaps the most concerning thing for all current Helium One Global investors is the company’s cash burn. But according to experts, HE1’s annual negative free cash should not be a concern for most shareholders. Helium One published its last balance sheet back in December 2020, and through the report, it was evident that the company had zero debt and cash holdings worth £4.8 million. That is a decent amount considering the fact that the company took almost a few years to set up properly.

When a company is not making then it does not mean that its share prices would go down. Biotech and mining companies tend to lose a lot of money before finding newfound success. Helium One is a company that deals with not only mining but also exploration so it makes perfect sense that it experiences cash burns now and then.

Should You Buy HE1 Shares?

For investors who are thinking to buy HE1 shares, it might seem difficult to trust an early-stage company readily. So here are a few reasons why one could invest in HE1 shares without any regrets.

• The management of the company is trying to pave way for future investments as depicted by Helium One’s 47% increase in cash burn over the last year.
• Though we have found a concerning lack of operating revenues for this company, perhaps those who want immediate return on their investments should avoid it for now.
• Its cash burn trajectory indicates that the Tanzanian company can easily raise more cash through issuing new shares, taking debts, etc. that tells us that it is well on top of its spending.

 

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