CAY 13.0% 7.8¢ canyon resources limited

WTF Did I Just Witness? Bring It On Wise Owl/Next Investor, page-66

  1. 1 Posts.
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    This is my first post here, after quite a while a member, and finding the commontary valuable. From the title of this post, I wonder if people really understand the arrangement with Next Investers/Wise Owl/Catalyst Hunter...

    They are essentially a keen group of people who invest in well researched projects/companies. They generally get in at the IPO stage, but may do as here with CAY, invest when the share price is low. They generally choose based on fundamentals., but will usually have en entry price that gives them a leg up. They also usually have a commercial tie with the company, and this may involve the sharing and explanation of a company's progress in return for commission (usually more shares). Many people follow them, and their commentary therefore influences the market.

    The SP for a company normally goes up after an announcement that Next Investers/Wise Owl will invest in that company, primarily brcause many people follow their lead. So, many new buyers, creates demand, and price goes up. Opportunistic sellers get a quick profit, and the price settles back down. Not rocket science. So, the way I see it, while it is advantageous to have them interested and promoting interest in a company, as they themselves say, the SP will best re-rate based on true fundamentals, where milestones in company progress show it reaching planned goals.
    This SP re-arate due to 'Wise Owl' interest is advantageous, but is not something that can be relied upon in the long-term. Let us look and see what the company itself can do... in my humble opinion.
    Last edited by easycass: 19/02/22
 
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