I’ll put it another way to make people understand better the mechanisms of supply demand:
1. If OSP drops another 50%, it’s only 6m market cap. Not only is that the price of a shell, because it is cheaper there is only 50% of the supply left.
2. It might look like there is heavy selling. But the most people can sell is 12m market cap if the price stays the same. If it drops to 6m, then 6m liquidity left. That’s liquidity. Liquidity does not equal actual supply.
3. I can understand the selling from a sellers point of view. But it is not without risk, and it is looking at the company in a short term time frame. If they are selling for tax loss purposes, then they would most likely have plans to buy back at a lower price. If they are selling to avoid another consolidation or cap raise, again, it’s desperate selling and they’ve lost hope. Irrational.
4. A third reason for the selling is they don’t see much good news in the coming quarter because of Coronavirus. I see that as an opportunity. Coronavirus will not be with us forever. Just a single buyer (like me) can effectively price in the news. What if the market doesn’t care if the quarterly is abit ordinary?
5. The fourth reason. Panic selling. It looks like there is not much demand for this stock. But let me remind all again, we are dealing with a 10m market cap company with a 1.1B annual revenue opportunity with contracts spread around the world. USA, Europe, Asia, Africa, Canada, Australia. Basically the whole world.
6. Also not any company but an Australian medical company selling a product with unique and first to market patent. Product developed by head honcho in the Alfred, a world class or world leader in the field of cardio/renal
7. Finally demand and risk/reward: We are looking at 1x loss vs massive upside if you are willing and experienced enough to hold long term.
Demand 50 trillion liquidity in the financial markets vs 12m market cap and 6m liquidity. If it drops 50%, then 6m market cap and 3 million liquidity. And I am been generous with my liquidity figures…
OSP Price at posting:
50.5¢ Sentiment: Hold Disclosure: Held
