Yep, been watching for some months now...in particular, I have been looking for a continuing trend with the appendix 4c's and a sign of a base forming on the charts.
The appendix 4c's are looking good so far...and unless I'm mistaken, I think the base has formed in the low 2's?
I can understand people's concerns however, especially given TOX's recent history, but to me, it appears like a classic turnaround story. The problem however, is that the massive shortfall in the recent placement has resulted in many shares in the hands of those who don't particularly care for the company...which is why the thing keeps getting hit on the head at every sign of a run.
This won't go on for ever, but in the meantime, TOX may need to get the volumes ticking over if they are to get through the overhead and give their options a chance of being in-the-money come expiry...$3.1m would be very handy given their brownfields expansion plans, in spite of the dilution.
I can think of several announcements that might get the volumes turning, including the sale of the Tank Cleaning business, which should ease a few concerns about how they will pay for the retort upgrade...and hopefully they can offload it for more than $700K?
Given their current position, it really is hard to see any downside...the upside however, is being effected by the the underwriter's need to offload...an interesting scenario.
At some point, it will become clear that the underwriter has finished off-loading and that TOX's fundamentals can finally take a front seat...at this time, I suggest you will want to be holding as the shares should move quite quickly.
Options are just about there in my opinion, with about 30% of those available changing hands in just the last 5 trading days...mostly at .004c.
If all that has been said by the company to date is to be believed, TOX would appear to be a real bargain and possibly even one of the best "investments" available at the speculative end of the market.
Not many specs I can think of with serious growth prospects, in a relatively competitor free niche market, sitting on a PE of just 2(ish) and still just over 500m shares fully diluted.
Cheers!
TOX Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
