GREY:LGLTF - Post by User
Comment by
TechTargeton Jul 15, 2015 1:16am
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Post# 23924832
RE:RE:TechTarget LOY HOLD @ 7.5 to 8.0
RE:RE:TechTarget LOY HOLD @ 7.5 to 8.02015/03/17 "24,437,500 Issued Shares at a price per share of $0.40"
https://www.stockhouse.com/news/press-releases/2015/03/17/loyalist-group-limited-completes-offering-of-common-shares
Now, would I sell at 8 cents if I bought them at 40 cents just 4 months ago? Probably not. Not at these prices with this enterprise value. I'd wait for 15-20 and move on unless the fundamentals were very solid. The bounce to 15-20 is natural unless it's a write off. And that, is the other option really! That's why it's trading at half until that uncertainty is out of the way.
The initial BUY rating was set at 7-7.5 as the stock was oversold.
One needs to keep in mind that it was fully declared in the March Offering that "The Company anticipates that the proceeds of the Offering will be used for general working capital purposes and the funding of potential acquisitions."
Not sure how the analyst read that differently and felt mislead? And what really caused the "sell but I'll hold" rating! But, that's water under the bridge now. What is important now is how the company executes and communicates with its shareholders.