Interesting Market Reaction to today's Positive NewsMy personal reaction to today's news is very favorable. What's not to like about an announcement for substantial additional sales volume from AMI's Aggregates division? Today, coupled with the previous announcement of the Kearl/Firebag 1M T sale, AMI is off to a great revenue start with 2022 gravel and sand sales. Add in today's CEO comment of "bullish" expectations for 2022 from its aggregates base division, all indications point to 2022 trending extremely well at this point.
Perhaps today's luke warm market response to the news is an indication of current broader market pressures? Or a continued downbeat reaction to the March 3 announcement of the successful closing of the Wisconsin acquisition? That was a very important announcement, and I was waiting to have the closing confirmed (i.e. a deal is done when the deal is finally done). However I don't think that merited AMI requesting a trading halt. Confirmation that important activities closed according to plan as disclosed in prior news release deserved a news release update, but not a trading halt. The trading halt would certainly be required if the deal was derailed and failed to close. A bit of a communications mis-step IMO, with price retraction reflecting disappointment in market expectation as to what the trading halt might involve. Or some concern with the full price arrangement for the TerraShift acquisition now that fuller details have been released (i.e. the unknown further number of shares to be issued coupled with those already announced)? The CEO certainly continues to reinforce the value contribution that is being provided by this acquisition, and the synergistic impact it creates across all AMI divisions.
I am looking forward to the March 17 investor update, and remain highly optimistic on AMI's near term and longer term prospects. AMI is working its plan very effectively as demonstrated by recent announcements of sales orders and expected growth.
All IMO.
Any other thoughts out there?
GLTA