RE: With transformational news last week and sellers exhausted, are ECR now moving to a new level?14 Oct 2024 11:29
Normally I'd say it's being traded, but last week's RNS made it clear ECR are at an advanced stage RE the tax loss sale so the market will be anticipating this. IF they achieve what's been conservatively estimated (3-5m) then that will almost or double the mcap on fundamentals, so Mr Market will want to somewhat price some of this in and not wait for RNS day. Now yes, if the sale price is disappointing or doesn't happen it'll fall, naturally, but we should rise on anticipation, the same way companies rise before drilling results etc.. I'd say with this scenario the odds are far more favorable than that example as we actually have something they want and 3 bidders means healthy competition. I say we rise this week, perhaps considerably (particularly with any further updates). James and Sausage will poo-poo, it's what they do.