RE:Cypress Development Stock $CYDVF: Undervalued Relative To Pe Link above seems broken, but I did find article from the general website. Author last part interesting, the rest we sort of know. Time will tell.
Coop
Investor Takeaway
As noted by the disclosures below, I do not currently own shares of Cypress. After reading this article, it may seem strange to find that this is the case. To explain this, I’ll lend a bit of insight into my personal investment actions. Oftentimes, these articles come as a result of me completing a deeper dive into a company that I have been following for a bit. As such, upon completing them, I then evaluate if I wish to purchase shares in the company, assuming I have money available to do so. Cypress recently saw some pretty strong single-day movement, causing me to put my buy desire on hold. Due to the volatility of lithium juniors, I anticipate that the company’s shares will see a downturn in the near future. As such, I plan to wait until then to initiate my position. However, if this does not happen shortly, I will begin to average. I still find this entry point to be incredibly compelling as Cypress remains severely undervalued relative to peers.
For other investors, it all depends on what your risk tolerance is. The company does have a bit more risk than most juniors, working to validate a new extraction process, but also represents a far better value proposition than its peers. For those that are willing to take on the bit of extra risk, I believe that Cypress is a strong candidate for growth. Investing now does also run the capital-allocation risk, as this is a company where the first major catalyst is not expected until the end of this year. Additionally, as mentioned before, the volatility of the sector could result in more attractive entry prices before the DFS.
However, I find that Cypress is a fairly attractive company even at $2 per share. As such, for those that may not want to take on as much risk, keeping the company on a watchlist and waiting to see the results of the DFS is also a fair strategy. The strong discount that Cypress is currently trading at allows for the company to maintain its attractive entry point even as it progressively de-risks itself. With long-term play the strongest option for investors, waiting for this risk to fall is a strong play as well.