Valuations get thrown out the window when you have market contagion, just because it's cheaper compared to its overpriced peers doesn't mean it can't get even cheaper. This could trade anywhere in the single digits and it will stay there until we see the U sector turn bullish again and the end of the non-stop selling. If they do announce equity raise at depressed levels then it's game over for any decent upside.
Yes I know I sound like a broken record about the selling volume but you cannot ignore the fact this stock has an endless supply of selling volume - yes, yes no substantial holder notices have been filed but everyone can see the non-stop selling pressure this stock has every.single.day. Look at the last few positive announcements - Permit issued, Resource Upgrade, Funding Process Started, Curzon Restructing - every single time we see positive news that sucks in new buyers they are quickly met with a wall of selling and within a few days we are back below the pre-announcement level. This is not retail that keeps selling, look at how tight the register is. Something does not add up.
s.loeb
AEE Price at posting:
12.8¢ Sentiment: None Disclosure: Held
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