Good post. What is ASIC asking Directors to explain though?

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Mainy66

816 Posts.

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30/12/18

13:10

Post #: 36984097
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Originally posted by Coventry ↑

"Simply Wallstreet" recently published an analysis of KDR. It concluded that $1.07 is its current worth.
On the other hand ANZ Trading has $2.16 as a "fair price".
I'm surprised that the 18/12/2018 announcement had such a negative reaction. Trading Halt indicates otherwise!
I also thought the market would be more bouyed by the announcement of SQM's involvement.
The media has indicated a 'joint venture' which then questions if KDR are going to release more shares (or bonds). Has their Share buy-back caused a negative affect on the share price and will the company sell a parcel of shares to a future investor? (or to protect it from take-over)
Perhaps the Institutions are privy to 'insider' knowledge in which case I'd like to think that any announcements regarding SQM's financing agreement have already been factored into the current share price.
Certainly the management team is performing very well and the tying-up of future contracts is brilliant. SQM must see this as a no-brainer to gaining a strong foothold into Australian Li mining (with minimal effort & risk).
A drop in the share price of some 30% in the past few weeks rings alarm bells that the short sellers are most likely at play.
The price may simply being influenced by light volumes, nervous mums&dads, professional traders on holidays etc.
At the very least ASIC should be asking the board of KDR to "please explain".
My graphs show support at low $0.90's. I'll be closely watching KDR's website for any announcements in the insuing days & weeks.
Happy New Year!

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Good post. What is ASIC asking Directors to explain though?

KDR Price at posting: $1.07 Sentiment: Buy Disclosure: Held
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