CGAT valuation and mcap18 Feb 2022 16:08
Right now I find completly nasty that we are sitting at £16M mcap as the market has not given any recognition to the BOD great improvements, appointments and acquisitions. But most importantly the market is not valuing the company based in the "real factor" which are the numbers such as the revenue, aisc, profits, and maiden resources.
At this point for me it is a necessity that the BOD manages to look after, and form relationships, with major shareholders and institutional investors. Retail investors rarely hold shares for long periods of time. Furthermore, communication from RNSs should be improved to let the market understand better the business operations and finances.
Overall I am completly dissapointed of current mcap and today's drop because means that there are sellers and retail do not truly believes in the business operations and expansion.
However I gotta say that sometimes re-rates come out of nowhere and SP increases can happen out of nowhere and very quickly, and this could happen anytime with Caracal Gold. As a matter of fact, last year I invested in another company that seemed undervalued at that moment (in my opinion) and the SP was fluctuating in the same range for almost 7 months, when I finally I was about to give up and sell my shares, in 5 days time and with no news of RNS the SP increased about 150%, exiting with a nice profit. What I want to say is that sometimes re-rates happens when you least expect them and they can happen very quickly in no news. I hope that a fair re-rate will come for CGAT in the upcoming months. GLA
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