...Of course it's too low. That's why they will up it to around $1.20. Even that's too low, but at $1.20 they will probably get it. Sad but true. Market is paying a small premium on $1.00. That tells you the market thinks a fair price is a "bit more". If $1.50 was a possibility, the market would be prepared to pay $1.25. It's not ...
I pretty much agree with you on the above except to say that it is not just a case of a fair price being a bit more but rather a case of the very strong possibility of a bit more being offered.
I guarantee you that if today ZFX comes out with a revised offer of $1.20 there will be a certain percentage of punters who will be prepared to buy for $1.23 - $1.26 because a higher offer of say $1.40 might then look a "greater" possibility.
Sure, the higher you go then the possibility of the next offer becomes less. I don't discount that either.
If you run 11 seconds for a 100m you probably aim up for 10.9 as your next goal rather then 10.8 as it is more readily obtainable. But having reached 10.9 you think it is only a small step to 10.8. Same with the market. That is why at the end of every bull run someone is the last to but at the highest price.....
AGM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
