In theory, the share price should have increased to the Genorah's takeover price once it was announced to the marketplace. But, as a lot of you know, empirical evidence doesn't always support theory.
The current shortfall of the share price is the lack of exposure NKWE has in the marketplace. If aware, punters, sophisticated investors, and other market participants would all jump on any price discrepancy, if opportune to do so. But, it doesn't help that NKWE falls outside the breadth of the efficient market hypothesis, due to it's small market capitalization relative to the ASX/world mean. Put simply, NKWE is unnoticed by the herds of market analysts and players.
Q. So, what does this mean?
A. Nothing we don't already know. NKWE is undervalued. But more importantly, the current share price needs to be taken with a grain of salt. Shareholders in the minority group have an indication of the true intrinsic value of the company/share price from valuations by Venmyn Deloitte and the transparent leader of the group that date back to January.
Q. What should I do now?
A. For now, nothing. Allow 'the leader' to negotiate on your behalf.
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This post is my two cents.
I wish all shareholders the best moving forward.
NKP Price at posting:
9.5¢ Sentiment: Buy Disclosure: Held
