You must be new to the nanocap markets. Daily SP movements mean little in this end of the market. You cannot treat 40+% selloffs the same way as you would on say CBA. Its completely normal for nanocaps to spend months being sold off on low volume, sitting on their lows and then only to mount a 1000+% rally.
Look at NOR (listed at 2.7c, rallied as high as 3.6c in 2 weeks before being sold down to 2c where it spent languishing for months until the big elephant runs to 16c), or RAP which is in the same sector (2.6c after listing, before sinking down to 1.5c where many holders gave up and took their losses, only to see the stock hit 27c half a year later), you will find similar SP movements in 1PG, ISX, TV2, and in fact almost every multibagger nanocap out there. All the time professionals have been sucking up every last loose stock. That is the nature of accumulation, mark-up (the rally) and then distribution. The concept is always the same, force retailers (and other loose holders) to sell at the lows and then induce them to buy at the very top.
A management that spends all its efforts on roadshows, investor presentations, broker solicitations etc cannot focus all its efforts on ticking off milestones. Would you rather SP be sustained by hype or by the underlying strength of the business? In the short term hype and exuberance determines SP, but in the long term SP is a reflection of actual performance. A pump and dump stock will always crash if performance is not there and undervalued companies will eventually be noticed by the market. The SP will always catch up! Besides our management hasnt exactly been sitting around doing nothing. If you look at the 3 investor powerpoints announced to the ASX you will see that they've been busy.
Of course this is a nanocap so nothing is for certain, which is why we use only capital that we can afford to lose with ease and not something silly like life savings, but if one looks at the top 20 shareholder registry, the exercise price of the management options, our revenue and actual market penetration, advisory board, and last few broker reports, I would say that we have a very good chance of having a RAP-like run in the future.
If MDR doesnt suit your risk appetite and you feel the constant urge to check SP every few minutes I suggest selling and moving onto something else. We are more than happy to absorb your selling.
Expand
(20min delay)
