The reason is pretty straight forward. The clearing price for any asset in a free market is set by the balance between marginal buyers and seller. On the buy side we mostly have retail. Most of us are probably about as deeply invested in MLX as our wallets (and common sense) would allow. There is no institutional following because MLX is neither terribly liquid nor meets the minimum market cap requirements for most institutional funds. So the buy side has not much fire power left. On the sell side we know that Old Peak (an anchor investor with about 12% of outstanding shares) remains a motivated seller. One can only speculate as for their "motivation" to get out at such desperately low prices. In any case, it's unlikely to be related to MLX per se, but rather some PnL hole to fill in their own portfolio. Considering the above, it's only natural to see MLX's share price depressed despite improving tin fundamentals.
As I've been banging on for a while there is a simple and elegant solution: MLX offers a block deal to buy back 50-100% of Old Peak's remaining stake at, say, last 1-month VWAP and everybody is a winner ...
MLX Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
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