All good points and this is what we've been saying for months...
The lack of communication is hammering the nail into AL3's coffin.
Management are selective with answering investor emails and that won't benefit them at the end of the day. They need to communicate to ALL shareholders (on the market and reply to investor emails) during the bad times, as well as the good. They risk long-term investors selling, if they don't reply to emails or give updates.
Do they care?
Probably not (as it seems...).
If they did, they would reply to investor emails and communicate to the market like 3DA.
Why do you think Perennial decided to sell?
Perennial Value Investment likely has a three year investment horizon (best guess) and likely has an open line with management, if it chooses. But AL3's management team don't communicate with the market enough, which leads to shareholders selling and that spirals out of control the more the company doesn't communicate to shareholders.
With the market booming all over the place, there are lots of good opportunities out there - and companies that actually communicate to the market and get them excited about the business, which drives the share price higher. Yes some companies love to announce news, thinking 'the more news we announce, the better'. But the business is a fail 9/10 times, if shareholders think that news is immaterial.
The bottom line is, the share price has been trashed because of the lack of shareholder communication. AL3 offers loads of potential and is capped at $25M -- a quarter of the size of 3DA. The companies are in the same sector and dealing with similar size customers (i.e. Boeing). Of course the two businesses are different. But 3DA is far better at communication with its shareholders and seemingly values their shareholders far more than AL3.
The longer this goes on, the more the share price will probably fall.
The market is probably overdue for a correction as well. So if one so happens to come about, with shareholder sentiment in the ground, what do you think is going to happen to the share price if there's a 10-20% correction. If a correction doesn't come, we still have Perennial Value selling shares and they have 10.8M shares left to sell.
How low the share price will go is anyone guess. But if 16-cents breaks on a closing basis, it's lights out. 16-cents has seemed to hold up relatively well in the last few weeks. But with Perennial Value selling and shareholder confidence in the ground, who knows what will happen - especially if a correction comes.
AL3 Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
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