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Bullboard - Stock Discussion Forum 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... see more

TSX:NPK - Post Discussion

Verde Agritech Ltd > The HOLD argument
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Post by 15Stanmore on Mar 11, 2021 2:24pm

The HOLD argument

Hello 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.
Comment by Ciao on Mar 11, 2021 2:35pm
Agreed. This is a long term hold as Verde ups production, it'll take years to reach 25M tons annually. Can't blame some warrant holders who may have sold some shares after seeing the hard runup today. But the "correction" allowed some to increase their positions, spreading the wealth. All good.
Comment by Storage1 on Mar 11, 2021 2:40pm
15Stanmore I agree with you on this assesment. We are still early days in this story and I have seen no reason to trade out of my position. This company is a winner in my opinion. Not a double but many times the current share price if they can execute on half of the pfs. Hold your shares
Comment by PedroPistacio on Mar 11, 2021 6:14pm
Yesterday the share price pushed to a higher high (from last year's lows) but on thin volume. Today however the share price kicked 9% higher on the highest volume for over two years.
Comment by 15Stanmore on Mar 11, 2021 8:43pm
Yes, a very interesting day. 428,798 shares traded at an average weighted price of $1.40 in 353 separate trades - quite a difference from March 11 in 2020 where there were just 27 trades for a total of 18,537 shares at a weighted price of $0.3534. That is a total trade value of $600,317 in 2021 versus $6,550 in 2020. It appears the run up in the share price to hit $1.50 early in the day ...more