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Verde Agritech Ltd T.NPK

Alternate Symbol(s):  VNPKF

Verde AgriTech Ltd is an agricultural technology company that produces potash fertilizers. The principal activity of the Company is the production and sale of a multi-nutrient potassium fertilizer marketed in Brazil under the brands K Forte and BAKS, Silicio Forte, and internationally as Super Greensand (the Product). K Forte is a potash fertilizer that is a source of potassium, silicon, and magnesium and micronutrients. BAKS is a combination of K Forte plus three other nutrients that can be chosen by customers according to their crops’ needs. It mines and processes its main feedstock from its 100% owned mineral properties, then sells and distributes the Product. Its Cerrado Verde Project is in Minas Gerais state, Brazil, which is a potassium-rich deposit, from which it is producing solutions for crop nutrition, crop protection, soil improvement, and increased sustainability. Its technologies are Cambridge Tech, 3D Alliance, MicroS Technology, N Keeper, and Bio Revolution.


TSX:NPK - Post by User

Post by 15Stanmoreon Dec 14, 2021 8:19am
526 Views
Post# 34228067

Trading pressures

Trading pressures

One only has to look at the Q3 numbers to agree Verde is at a very different point today than at any time in its history, and with a reasonable expectation of rapid future growth. 

12 moths ago, when the current circumstances were simply a best guess prediction, I was comfortable concluding that a $2 per share valuation on a 50 million share float was likely to be attained by year end 2021. Having invested in Verde under this scenario, it is very satisfying to have hit the predicted $2 per share within the last two weeks. Blowing through this target to hit $2.70 only 12 days later has taken me, and perhaps most long term Verde investors, by surprise, and leave us wondering if another March/April 2021 retreat is lurking around the corner.

Looking at the deapth of market numbers this morning, an market order to buy 25,000 Vered shares would immediately run the stock price to over $3 per share. Like me, I believe many Verde investors have little interest in cashing in below $3 and have instead been carring a "not less than $5"target in their minds. The significant de-risking of the Verde opportunity over the last 24 months has gone a long way in making this assessment not an unreasonable one to hold. I have been saying for some time, along with other contributors to this forum, that the absence of willing sellers will have a significant impact on the upward trajectory of the Verde share price. 

We know that there will always be small holders trading on the margin, hoping to lock in small transactional gains from dancing in and out of the stock. That being said, we know the larger shareholders, some with accumulated positions in the hundreds of thousands and some with millions of shares are seeing their holdings double in value in the last 50 days, and with the potential to double again, are not selling into this early rise. 

This is what guides my prediction of a solid $3 per share price in the coming year. The fact that we might hit this level in 2021 suggests we will likely see a pull back before holding steady above $3 as we did above $1 (last traded below $1 on Friday July 23, 2021).

Just my persoanl thoughts, and very interested to hear what your thoughts are suggesting.

Cheers.

S.

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