I say it will get to $1-2 because I believe it is going to get to 10-20c on fundamental drivers, it is already worth as much but there isn't enough liquidity or confidence in the retail market to get it there.
But I dont think it will attract any interest at 20c from a large corporate fund if they know that, for instance, a $10m investment could go down by half a million dollars for every pip traded. At the sort of volumes this travels at, someone could trigger stop losses on them with a few thousand dollars in shares on a low interest day. This is not viable.
On the other hand at $2, it needs to drop 5 pips, and because there will naturally be more volume due to more funds and brokers trading, it will be much less likely to happen randomly.
I haven't held a tech company before that managed to go from 1c to $10 without a few consolidations and material placements. It takes a bit of back scratching to achieve. Retail just don't have the balls or belief to do it on their own.
CDX Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
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