Yeah it needs a couple more wins - but don't confuse volatility with market sentiment.
CAT has always had a "liquidity" issue - which can drive volatility. This is because ownership is concentrated among insiders and a couple of large long term institutional holders.
Adir Shiffman - 28.24m shares
Ng Kar Wing - 21.43m shares
Shaun Holthouse - 21.38m shares
Van Der Griendt - 20.51m shares
Total insider ownership is 91.56m shares (or 48% of the company) + plus you still have Unisuper and Quest Asset collectively holding another 12%. So free float of the company is about 40%, probably even less. Given market cap is about $240m, means $100m is on free float - which is tiny. Normal daily vol for CAT is around 200-300k shares, these days you need a market cap (free float) of at least ~$1b so daily vol wouldn't be a big issue.
If you have a small cap manager looking after a $300m fund whose client is getting nervous about markets and wants to redeem and they have a small 1% position in CAT, it will take them about 30 days to exit the position if they were to apply the standard 1/3 selling of ADV. Given that is not feasible, and given all aussie small cap managers hunt in packs you won't see any buying support until the price shifts significantly.
Frankly I think that creates an opportunity if you have conviction in the stock and know the company/opportunity better than most.
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Last
$1.89 |
Change
-0.055(2.83%) |
Mkt cap ! $493.4M |
Open | High | Low | Value | Volume |
$1.88 | $1.93 | $1.86 | $528.4K | 280.4K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 5347 | $1.87 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.90 | 1526 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 5347 | 1.870 |
1 | 2000 | 1.850 |
1 | 1000 | 1.845 |
1 | 1000 | 1.830 |
1 | 6582 | 1.820 |
Price($) | Vol. | No. |
---|---|---|
1.940 | 1546 | 1 |
1.945 | 3375 | 1 |
1.950 | 42877 | 4 |
1.955 | 5000 | 1 |
1.960 | 10603 | 3 |
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