RE: Ten Reasons Why Val Will Mirror SAR Market Cap24 Sep 2021 08:50
Porks - are these boards venues for discussing shares/companies, their strengths and weaknesses, their opportunities and threats? Or are they simply venues for promoting shares/companies (in which case we should stick to strengths and opportunities only) to investors? As an investor I value the former use-case over the latter. I recognise that you hold a different view!
The long decline in the SP here has created an attractive opportunity for a committed value investors like myself. Recent changes in management and strategy combine to create a platform from which commercial success is more likely. I have a position in VAL, because I believe that the company can generate real value for its shareholders through such commercial success. I - obviously! - want the company to succeed. But... the company is not perfect, there are weaknesses and threats as well as strengths and opportunities. Overtly dismissing discussion of these is the hallmark of simple ramping, of an intent to suck in new investors and drive the SP regardless of the underlying situation. You only have to read this board to understand that this is perhaps a perfect opportunity to do just that.
Regarding your responses on points 7&8, Cenkos will do their best with the limited number of funds who are active investors in micro-caps like VAL. Such funds are unlikely to drive sustainable price appreciation by investing in the open market. It's just not how they work. There's a lot of road to cover before VAL gets to an MCAP where tracker funds might become a material factor, they simply aren't relevant strategies for small-caps (let alone micro-caps) because of the small amount of committed capital AND the underlying challenges of index replication.
I agree - as I said - with C. If VAL can get a deal done in time then no placement will be required.
But investors - current and potential - should be very clear that firms employ Cenkos to raise capital from institutional investors, and such capital will be raised through placings. At the risk of stating the obvious, only capital committed through placings is available to the company to further its ambitions. Brokers have a role to play in marketing the attractiveness of their clients issued equity, but only because such clients might want to go to market to raise more!
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