TSXV:YDX.H - Post by User
Comment by
Alpha007on Oct 30, 2019 10:10am
130 Views
Post# 30286153
RE:Several Factors playing into low s/p.....
RE:Several Factors playing into low s/p.....I agree with your statement about investors buying low and that in the past 12 months the company has showed potential and more of a clear path than in the past, however, this company has been operating for 10+ years..with very little foundational presence (Contract revenue comes and goes zero reoccurring) to show for it. I understand they completely switched their operating mission last year but still, some agrue they still have failed in a sense and the reason this gains zero traction on "positive news" is because of its bad track record to investors.
Another problem I've mentioned twice before here is its large outstanding share count. 90+million shares with 30mill of that being private, it is a very large amount for such a low price and cap, which is why we see such a large swing on such low trading volume ($20,000 can be a 20% swing). Unless you have been on the other side in private equity (Which I have been so ask any questions if you like) you don't understand that insiders have probably all but squeezed the profit from this stock in the last several years. Example: Before or after the company was public, private investors could have had conversions for pennys when the stock was trading well above $5.00 years ago. Which means some people got super rich (lets say they invested $50,000 with a 50Cent conversion price which is not uncommon) and others thought they were buying a promising company that really tanked, I think this has hurt its stock growth and the only way it will bounce is actual fundamentals and not a "promise"
At the end of the day I'm still long, but we can't ignore concerns