As is normally the case after a CAP raise the stock reverts back to what the sophisticated stock brokers wish to pay. A bit manipulation so they can top up and a bit fundamental in that they have done their analysis and thats what they were prepared to pay to raise the necessary capital for expansion.
So for us existing shareholders its a 10% dilution for someone else to fund the expansion from here. I think thats a good deal.
For me if they need $15m to expand then thats a great sign that these contracts are real.
Yojee have pumped their own tyres up before but for me they seem more real now.
I am not sure the September qtr results will be anything significant. However in 9 months time say by end March 2021 the whole perspective on this share should change as this $15m has been put to work.
It amuses me about what the analysts target price is. Its somehow self fulfilling as they create their own hype. For existing share holders I have my own entry and exit pricing. When I dont let greed get in the way I make good decisions. So for this stock its buy a little at a time on the way up. Also sell a little on the news announcements, make a bit of a profit. Leave something in for the hope it reaches multi dollar status. Ideally have all your original capital out and have a free ride to the moon!
I have this stock in my speculative stock category at present. However, my assessment will change if I see real sales come from this $15m investment of capital. Its not unusual to want for every dollar of investment $5-$6 of repetitive sales pa so that makes it a $75m - $90m sales business in say 12 months. The valuation on that would be a couple of bucks.
So thats the speculation. In my view its worth the speculation. If they blow the $15m and dont get sales then the speculation is a fail and we are all screwed!
Everyone do your own research but I reckon those of use who have been here for a while will be enjoying the latest hype and hope it turns into sales.
YOJ Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)