The HOLD argumentHello fellow Verde shareholders,
Quite a day so far - 268 separate transactions for a total of 302,000 shares with a weighted average price of $1.401 and an average trasaction size of 1,127 shares. There was no single broker buying more than 15% of the total, and only RBC on the sell side with just under 30% of the shares sold.
Looking at a couple of the larger trades, we may have seen the last of the warrant holders selling into the run-up and locking in their gains vs. their recent $1 acquisition price.
At the risk of sounding like a Reddit promoter, the surest way to keep the value of a NPK share rising is for those of us who are fortunate enough to currently own the a piece of the 50 million shares outstanding to simply hang on to them. As regularly reiterated by our CEO and the Board, the Company does not intend to issue any more shares. The current and future value of the Verde corporation will be divided among the current 50 million shares and you will need to buy one of those if you wish to participate.
If no shareholder is willing to sell below $2, the price will need to rise to $2 to secure a trade.
If the net book value of the Company rises to $100 million, the shares will have a base valuation of $2 per share.
As any of you who follow my posts on this board will know, I believe the first strategy will achieve a $2 price tag the fastest, and in my opinion with continued good news in the quarterly figures, this will happen before the end of 2021. I also believe the good work of the CEO and the Board has the Company on track to achieve the second valuation, which makes the decision to hold onto the shares I have acquired over the last year an easy one.
Verde fits all the characteristics of a Warren Buffett buy: a great Company, significantly undervalued today that will produce annuity like returns over the next 35 to 40 years, that you simply buy, hold and enjoy the income stream. I am no Warren Buffett, but I do enough to try to emulate the process that made him so successful - his personal net worth just hit US$100 billion.