Here is an example of how far a small cap company can be undervalued by the market.
People talk about market efficiency or the market being right. Not always the case with small caps.
Sentiment can cause extreme overvaluations as well as extreme undervaluations.
"PAR Technology Corp (ASXAR) will buy fellow restaurant tech company TASK Group (ASX:TSK), with TSK shareholders able to choose between cash and PAR shares.The cash deal is worth 81c per TSK share – a 107% premium to the 30-day average price."
https://unauthorised investment advice/news/top-10-at-10-13m-lithium-farm-ins-and-a-massive-100pc-takeover-premium/
Here is an example of how far a small cap company can be...
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Last
5.4¢ |
Change
-0.003(5.26%) |
Mkt cap ! $46.71M | |||
| Open | High | Low | Value | Volume |
| 5.8¢ | 5.8¢ | 5.4¢ | $31.80K | 560.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 140000 | 5.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 5.8¢ | 98781 | 1 |
View Market Depth
| Last trade - 15.27pm 11/06/2024 (20 minute delay) ? |
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Last
5.6¢ |
Change
-0.003 ( 1.75 %) |
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| Open | High | Low | Volume | ||
| 5.9¢ | 5.9¢ | 5.5¢ | 172354 | ||
| Last updated 15.29pm 11/06/2024 ? | |||||
| MNB (ASX) Chart |