IMHO, the SP for these mid-cap growth commodity producer companies appears to have very low correlation with the underlying commodity (at least when it Oil prices is going up - if it goes down, the SP gets penalised - " asymmetric exposure").
Looks like the market penalises the SP given the growth / jurisdiction / CAPEX risks with bigger discounting rates (as in - it is more worried with capital allocation and development risks rather than the commodity prices themselves).
KAR management team appears to be doing a good with work with good capital allocation, diversifying the business across jurisdictions (Who Dat), and organic growth in Brazil, which might produce excellent cash flows. While there is all this uncertainty, I believe the SP will be discounted as it is and the big players prefer mature companies with cash-generating.
I believe in KAR for the mid-term and slowly buying at these levels.
Strap in. Lift off., page-251
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Last
$1.83 |
Change
0.050(2.81%) |
Mkt cap ! $1.466B | |||
| Open | High | Low | Value | Volume |
| $1.80 | $1.84 | $1.79 | $8.392M | 4.606M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 6282 | $1.83 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.83 | 79500 | 3 |
View Market Depth
| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| KAR (ASX) Chart |