Earnings increasing & multiples expanding (Re-rate commencing), page-944

Considering how poorly the asx performed today (worst day in 3 months) CXZ did pretty well. Seems we have hit our price floor - very unlikely anyone will be able to buy in below 2c. If the price was going to drop - today would have been the day, don’t underestimate the significance of this. Anyone with bids below 2c are kidding themselves.

A large portion of current share holders would have bought in higher than current SP, and with every passing day those willing to sell at a loss will do so - leaving the long term holders and the day traders, driving up the price. Those same day traders driving down the price at the end of the trading day will be the ones pumping this stock way beyond fair value when the rocket comes.

As for the CEO issue, this company has been eyeing potential American CEOs even before our previous CEO resigned. They simply referred to such a person as a “business development manager” then used identical language to describe their ideal CEO after the exit of Guy Perkins. I’d love to see a new CEO appointed as it would boost the investor confidence that what lost with the exit of Lucerne - this is what stopped the SP from increasing to fair value in the first place. There’s no doubt in my mind we’d be around 10-15c based off the financial results were it not for that.

I’ll end this by reminding everyone we are still valued at what we were a year ago despite a ~600% increase in net profit in a debt free company with another year of guaranteed revenue. A year from now covid 19 will either have a cure/vaccine or be the new normal, and lets be real governments can’t afford to continue with lockdown measures next year - we are already in ~$600B in debt (data from March 2020 - Australia), if covid is still an issue next year with no cure then whoever is susceptible to it will die - and that’s it, the other 98% of the population will chuck a sickie for 2 weeks and get back to work. 2021 will be business as usual, and a likely renewal of the GM contract (look at their SP on the NYSE, they’ve done quite well considering the car sales market has been decimated).

No one is going to be able to convince me this company is fairly valued at its current price. Ignore short term price fluctuations, as a small cap company in a recession you better get used to it. In the first recession in 30 years don’t hand over your money to the savvy investors vacuuming up shares before the rocket - be patient and wait. Anyone who expects significant returns in a matter of days or weeks is never going to succeed trading on the asx - I encourage such people to sell their shares to me and invest in a lottery ticket instead. I hope we can all look back on these threads and celebrate our 5-6x return on investment in the near future.

Apologies for the rant, I just don’t like seeing everyday investors falling for the classic tree shake - focus on the fundamentals and wait. I’ve seen a few people mention market manipulation - maybe? Maybe not. Just remember just because something is illegal doesn’t mean it isn’t going to happen, recently a high ranking executive of Samsung was accused of this very thing.

TLDR: valued at what we were a year ago despite making significantly more money since then, even if we made a fraction of the FY20 profits in FY21 the fair value of CXZ would still be more than what it is today.
Sell for small profits at your own risk, you might get lucky and be able to take advantage of the volatility to make a profit but any day could see the SP jump dramatically.

Not financial advice, DYOR blah blah blah.