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Teal Valley T.TV


Primary Symbol: P.TEAL

Teal is a Canadian, pharmaceutical & NHP manufacturer selling to Canada’s national, chain drug stores, presently expanding its portfolio to include cannabinoid-based products utilizing proprietary formulations & extractions for both the global Rx & recreational markets.


P.TEAL - Post by User

Comment by kramaswamyon Nov 16, 2020 3:03pm
178 Views
Post# 31908086

RE:TV's SP

RE:TV's SPI think it's less a question of TV showing another solid quarter (although that is important as well), and more a question of spot prices holding above $1.15.

The longer they stay where they are, the more attractive Trevali looks. If we have an entire quarter above $1.15, then yeah absolutely there is no reason for share price to remain where it is.

For context - the last time zinc spot was stable at $1.15 was around early 2019. At that time, share price was around $0.4.

Even more interesting though, is if you look back in mid-2018, when spot was also stable around $1.15. At that time, share price was around $0.8.

The difference between these two? Early 2018, spot price had just come down from all-time highs, but the sentiment was still that there was room for it to go back up. The trade wars were still in their early days, and pessimism wasn't quite so high.

Early 2019, though, despite the fact that spot price did indeed go up beyond $1.2, I feel the mentality was much more pessimistic.

So the question is - today, is the view on zinc pessimistic or optimistic? If you think the former, then I think you could reasonably expect $0.4 share price if spot price holds where it is. If you think the latter, then you can reasonably expect $0.8 share price if spot price holds where it is.
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