Gold Hydrogen (ASX: GHY) shares are down 19% on the day. Sure, there’s been a decent run up in them but then that’s rather the point here. Yes, there’s a fascinating theory being tested here. Yes, there’s a chance of a good success. Things are progressing and we’re seeing encouraging evidence even if not as yet actual proof. But it’s still possible for that share price to be driven by hopes and dreams beyond what objective evidence would justify. So, if that happens, there’s a high chance of the GHY share price then falling back again.
The specific announcement that drove the most recent rise: “Although the results are only preliminary and indicative, Ramsay 2 has confirmed the presence of Hydrogen as found in Ramsay 1 and the historical Ramsay Oil Bore. This further supports the view of the
Company that there is a natural hydrogen accumulation in the area.” Preliminary and indicative. Therefore there’s that room for that hope value to raise its head. Which is rather what happened.
Gold Hydrogen share price from Google Finance
As we’ve said before about Gold Hydrogen: “GHY shares have risen on no specific and detailed corporate news but there is a swell of interest in the general sector Gold is working in. The idea of “white” hydrogen is the latest of the cure alls for climate change. This is something which really would be a cure too, if it actually works. But we're still rather at the theory stage when trying to work out whether it will, in fact, actually work. This means that changes in sentiment will have significant implications for the share prices of those involved in the enterprise.”
And as we’ve said about GHR shares: “Gold Hydrogen (ASX: GHY) shares are up 54% today. This on the basis that they’ve found some hydrogen (and some helium) by drilling for it. This is lovely for Gold Hydrogen of course, they’ve found the element they were looking for. But this also has much larger implications for the economy more generally. And contrary to what is normally true in the natural resources sector the more people who find more of it the more each particular well is likely to be worth. The one well that contains hydrogen will be an interesting peculiarity. Many wells producing much hydrogen will be the basis for a new industrial sector.”
It’s still possible for the share price to get ahead of reality, driven by those hopes and dreams. Exactly what has happened here of course.
