New Investors today. It CAN happen for KAI!!Material news being...

New Investors today. It CAN happen for KAI!!
Material news being rewarded with re-rates:
It’s a rough market for roughly 98% of small cap companies.
But for the lucky ~2%... Discoveries, successful clinical trials and other company-making announcements are being rewarded with share price re-rates that were more common during the 2021 bull market.
One example is small cap super star WA1 Resources (we’ve never held shares in this one) - which made its rare earths and niobium discovery in WA.
Pre-discovery WA1 Resources had a market cap of $6M. Now, it trades at ~$600M. WA1 Resources has gone from ~13.5c in October 2022 to a high of ~$11.35 per share - 84x higher than its price in October 2022.
Another is Wildcat Resources (also never held this one), which was trading at 2.3c per share in December 2022. Earlier this week, Wildcat hit $1.01 per share - 44x higher than its price in December 2022. Before acquiring its lithium project in WA earlier this year, Wildcat was capped at just $17M - now it trades with a market cap >$1BN.
We think the current state of play in markets can be explained relatively simply…There is still plenty of cash on the sidelines waiting to invest… the only difference is that the cash is more selective when it comes time to put capital to work. And the rare investors who made money in the last 12 months will generally be looking to cycle back into a similar story and thematic to try and “do it again”.
Once material news is put out and the company does something in a hot macro thematic, the capital starts flowing in and QUICKLY.
As we have seen, in a bear market this only happens for the select few small cap stocks that deliver truly good news.
Speaking of hot macro thematics and a wave of capital flowing into it….Capital IS flowing into WA critical minerals projects: We talked about how we think critical minerals projects in good jurisdictions are particularly in demand in a previous weekend email. See that weekend email here: Critical Materials: Long term macro thematics are still very strong.