RE: Trading Update....17 Jun 2022 16:38
Hebridean,
This week has seen a sea of red in the markets, with prices crashing across the board, so the fall has to be seen in that context.
There were just a couple of moderate sells yesterday (30,468 and 11,378 shares), about a couple of hours before closing. causing the fall of 21.6%!
The 11,378 shares seller can't know much about OTAQ, or he would surely have waited for today's regular monthly SIP purchase or about that same number of shares, to give him a better sale price:-
17-Jun-22 11:50:22 15.50 11,777 Buy* 14.00 15.00 1,825 O
And it may have been the same seller for both, as they were quite close together.
OTAQ is looking ludicrously undervalued, trading at about net asset value now, with stellar growth prospects, and business appearing to be great.
I certainly think that OTAQ has £100M. market cap. potential, within a few years, which from the current cap. of just £5.47M. clearly gives quite extraordinary upside.
OTAQ has given us two good RNSES very recently (Tuesday 31st. May, and Thursday 9th. June), which were its first real news RNSes of this year, and it makes sense to spread them out a bit, rather than bunching them too closely together.
I believe that trading for the year ending 31st. March 2022 must be relatively in line with expectations, else the company would have more imperative to notify the market earlier.
Technically the company doesn't have to give a trading update at all for last year if trading is relatively in line with expectations, although it wouldn't be good practice to go too long without some sort of update.
But the final results were issued in July for the last two years, despite COVID-19, so potentially this could be brought forward to H2 June, and bypassing the year end trading update.
What will be more interesting though will be to see how this financial year has started, i.e. April-June trading, and the outlook statement.
Could we also see some more non-SIP director share buying at these lowly levels soon?
Well, not before the final results, because we're in the close period, which gives outsiders an advantage in taking advantage of what should be a great, and potentially pretty brief, buying opportunity.
OTAQ has gone down on pretty low volume, and likewise it could go back up on pretty low volume.
There's only a few £K. of stock available at about this level.
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