It's an interesting question - with POZ rallying, commencement of operations imminent, and Ausbil (previously our single largest institutional shareholder?) having re-emerged as a net buyer - why are we languishing at current levels?
Im not very interested in explanations potentially offered by some members i.e. 'don't worry about it, the market hasn't yet cottoned on to RVR but when they do the SP will go super-sonic', etc.
Brushing aside those sort of non-explanations, what do people see as the most plausible reasons for the languid price movements?
I've been trying to think of a few:
1. A major holder is selling (I don't think this is a compelling explanation. As I mentioned, Ausbil has re emerged as a net buyer and we havent received any notices from other major holders on the register (although I suppose they may yet come)
2. The market considers c 20c reflects fair value (a plausible explanation I suppose, but it strikes me as odd considering RVR was recently valued 20%+ higher at an equivalent Poz)
3. selling pressures are due to ST traders who bought at the recent bottom (following distressed selling from Ausbil) and flipping now for quick profit (not a compelling explanation imo considering the price ground down as low as 18c last week)
