RE:RE:RE:RCG NPV $95.6M
Some other traders were trying to read the level 2 tea leaves in the fall.
Q: So, what did level 2 tell us ?
A: nothing
Level 2 in Jan 2019.
0.5c 1,473,000 shares
1.5c 791,000 shares
1.5c 1,565,000 shares
2.0c 49,000 shares
2.5c 129,000 shares
3.0c 210,000 shares
3.5c 50,000 shares
4.0c 48,000 shares
4.5c 10,000 shares
5.0c 0 shares
5.5c 0 shares
6.0c 0 shares
6.5c 1,4000 shares
7.0c 40,000 shares
7.5c 0 shares
do the math
$57,085 total trades / 4,379,000 total shares = 1.3c/sh average
Some might argue that the average share price of 1.3c indicates a low value for the company.
The counter argument is that it would only take $57,000 to drive up the price to 7c/sh.
From Sept 2019 to the halt there was less than $100,000 worth of trades ever listed at level 2. Over the same time frame there was 53.1M shares traded for $2.5M or an average of 4.7c per share. The level 2 prices told nothing about the larger movement of shares.
Neither of level nor the shares dumped in the fall is very meaningful in a company the reports $30M of assets and needs roughly $20M of cash to enter production.
We can only guess what would have happened had someone mopped up $2M worth of shares in the fall. New buyers might have seen support in the stock price and bought in. Others might have taken the opportunity to exit a trade or investment.
If the market price settled at 5c per share it would still say nothing about the value of the company.
All we would know is that it wouldn't correspond to the $18.2M invested in 131M shares at 13.9c/sh between June 2016 and June 2018. (Roughly George Young's average)
If the true value of the company is, say, 7.4c/sh then all we can say is that the insiders paid a premium and the traders of the public markets paid a discount.
Ultimately, the per share price in the public market has no influence on the private placement market. And for now the opposite is also true. And that will have to change if warrants (fresh cash) and options are to kick in.