Yeah it needs a couple more wins - but don't confuse volatility with market sentiment.
CAT has always had a "liquidity" issue - which can drive volatility. This is because ownership is concentrated among insiders and a couple of large long term institutional holders.
Adir Shiffman - 28.24m shares
Ng Kar Wing - 21.43m shares
Shaun Holthouse - 21.38m shares
Van Der Griendt - 20.51m shares
Total insider ownership is 91.56m shares (or 48% of the company) + plus you still have Unisuper and Quest Asset collectively holding another 12%. So free float of the company is about 40%, probably even less. Given market cap is about $240m, means $100m is on free float - which is tiny. Normal daily vol for CAT is around 200-300k shares, these days you need a market cap (free float) of at least ~$1b so daily vol wouldn't be a big issue.
If you have a small cap manager looking after a $300m fund whose client is getting nervous about markets and wants to redeem and they have a small 1% position in CAT, it will take them about 30 days to exit the position if they were to apply the standard 1/3 selling of ADV. Given that is not feasible, and given all aussie small cap managers hunt in packs you won't see any buying support until the price shifts significantly.
Frankly I think that creates an opportunity if you have conviction in the stock and know the company/opportunity better than most.
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Last
$2.43 |
Change
-0.040(1.62%) |
Mkt cap ! $655.0M |
Open | High | Low | Value | Volume |
$2.38 | $2.45 | $2.33 | $2.028M | 853.5K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 4218 | $2.42 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.45 | 4218 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 2910 | 2.350 |
2 | 2536 | 2.330 |
1 | 21641 | 2.310 |
3 | 2897 | 2.300 |
1 | 350 | 2.270 |
Price($) | Vol. | No. |
---|---|---|
2.470 | 54977 | 2 |
2.490 | 250 | 1 |
2.500 | 12193 | 5 |
2.520 | 2000 | 1 |
2.530 | 11515 | 2 |
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