RE: What a joke 87p. Wtf is going on? Us markets are doing well10 Jun 2021 16:58
Still to hear a compelling explanation as to how a less than 10 % set of shorts are in themselves controlling and pulling the price down.
Shares are available to buy if people/institutions think they are too cheap just now.
Look at volumes for c. 2.5 months now and it's clear there is no stampede of big buyers desperate to scoop up all shares.
Multiple factors go to making share price at any point in time.
Many of them are based on quantifiable things such as company balance sheet, profit and loss, news on expansion, increase/decrease in its market, wider economy factors etc.
Some of them are less quantifiable such as sentiment, wider market.
Personally at £1:24 in mid March the price held more of the non quantifiable factors and was a bit over true value at time (just look at the trajectory of the SP in the weeks/months to that point).
Little business quantifiable factors had altered (altered significantly) to fully justify this.
Longer holders will recall much feeling we would face a strong resistance at c.£1, yet we flew past from c. high 70's to that 1:24 peak.
Yes the company is open now (literally just open), with that comes prospects of profitability and improved fundamentals.
HOWEVER!!!
Initially this puts company in a worse position briefly in that cash burn will be higher in that very initial re opening phase (as has been covered by company).
Staffing costs, heat and light, re stocking, cleaning costs etc.
Limited revenue (growing, but still less than required to be profitable).
Mind the SP was £1:20 + for very very short time while closed.
It was for example c.25p while closed for a lot longer.
We are on a recovery journey that is not a straight line up.