RE:RE:RE:RE:RE:RE:RE:Reunion and Gmin stocks both up today Is there a lot of room for Dundee stock price to run well past $2.50 by Dec?
If the market for Dundee stock was efficient the answer would be no. But the market is hardly efficient. Just a couple of months ago the stock traded at $0.70 while a couple of days ago it traded traded at $1.33, almost double!
Dundee is trailing Reunion and Magna on a 3 and 6 month basis. Let me repeat as Dundee is trailing Reunion and Magna on a 3 and 6 month basis. This is the very definition of inefficient.
In the past many investments did not pay off so it takes time for investors to overcome their skepticism of management. Issuing debt to payoff prefs was a terrible idea. That is in the past. Stocks are owned by the most optimistic. The person willing to pay the most at any particular moment in time. There is a long runway until Dec when we should expect a FDA decision on TauRx.
On March 12 I wrote the following “A $15B USD TauRx IPO would get Dundee over $600M CAD, a $30B USD IPO would get $1.2B CAD and a $45B IPO would get $1.8B CAD. Dundee currently has a market value of $80M.” Since then the FDA has changed the way they look at Alzheimers meds.
I think momentum algos will keep pushing price. By the time November rolls around Dundee will likely attract Biotech investors.