Agreed. There will be some volatility and I disagree with company breakups as a rule but in this case it makes sense to me.
The float will see the SP of the new company fall initially from the IPO price but it should recover fairly quickly. From the perspective of New Energy alone it will have a potentially bright future. My aim would be to hold my shares in both for the long term.
There is so much research and activity in these discrete areas it seems to me to be a no-brainer, and the shares received from the deal will be easy to hold coming from a zero value baseline in terms of pocket impact.
The world is waking up to the shortage of quality graphite, although AXE doesn’t figure in any ‘global’ analysis I have seen as yet. Even graphene-centric discussions don’t recognise AXE yet, so the marketing is extremely important in locking in customers and driving the development process. Once this begins we should see a rerate of the SP followed by a drop again during the orphan period before its final recognition and achievement of fair value. But it’s all dependent on visibility - and we all know my view on that.
For now, stay strong, look to the inevitable future and hold dammit HOLD.
AXE Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
(20min delay)