I don't think it was overvalued. A week ago I tried to estimate some metrics for MLX and compare it with RMS, DRM, SAU, AMI and WGX. It turned out that MLX was most undervalued (according to my metrics) and WGX was the second best.
But I see these problems:
- The former holders of MLX now suddenly have two stocks, a gold miner and a base metal miner. Either they are dumping the gold stock or the base metal stock depending on their individual investment thesis. On the other hand, there are only a few new investors that are (already) aware of WGX or the new profile of MLX.
- There is no reliable data available for the new MLX nor for WGX. Of course you can try to estimate that (which I did) but most investors probably don't go that far but rather stay away from these stocks until there is some clarity about profitability and other things.
I think both of these problems will need a couple of months to peter out.
MLX Price at posting:
55.5¢ Sentiment: Buy Disclosure: Held
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