Now we know why the share price has been under increased selling pressure. Clearly some had access to insider info and were selling out in anticipation of the interim results. Not looking good from a technical perspective as the crucial 15 cent support level has failed to hold. May fall to the next support level of 12.5 cents or whatever the capital raising price is going to be. Wouldn't surprise me if there are some shareholders who already know or will find out before everyone else what the capital raising price will be and start selling again.
Very disappointing and so far confirms my suspicions that they need a lot of new customers to make their business model work. Explains why the share price and market cap is where it is as the company has a lot of work to do to prove that they deserve a higher price or a premium price that reflects a company with significant growth potential.
Will continue to hold as I still believe in the potential of Envirosuite and the next support level is not too far away but the company really needs to start proving that their business model works or they will have a hard time raising capital or be forced to raise it at a significant discount.
EVS Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
