Laggard Trade Breathes On notice of a 500 share bid Friday at $2.32 I thought here is a day to buy a dip in price. I placed 2 bids for 13,000 shs both spread below current 500 bid of $2.32. Suddenly 18,000 bid appears just after mine was placed. A breath of life in a stale managed company.
With low shares volume per day and a quiet stock, a bid of that size makes me think there is a patient buyer picking away at CAA. One who will not chase the ask.
Molasses it remains. I am not impressed by the current management style of CAA. There never seems to be any new goals or benchmarks to achieve. Remove royalty payment press releases and what do you see left, not much excitement. In time of opportunity there seems little attention to acquisition as a royalty company should act. Where market was hot, never a thought to promote company, raise capital or list on TSX.
Having sold a good portion of holding at $2.75 to $3.50 it is time to give this a look. Bid here was solely on lower share price as to value of the asset and possibly a settlement reached in current decade on the laughable lawsuit between CAA and HBM. CAA has been reliable on buy side of its numerous collapses in share price, some self inflicteded not all connected to broad market movement.
In the hands of an aggressive, SMART management, with Callinan royalty cash flow in hand, this could become a TSX Venture deal maker. Big money is attracted to deal makers not complacency. Maybe a change in CEO and a new BOD is possible - one can dream sometimes. Maybe HBM is bidding the 18,000 shs or a company buy-back.
Cheers manxcan