Timing is Golden, page-95

Hi Wiseowl77... not sure that anyone has answered your question so I'll give it a bash.

re-rating is a term that is used a lot on HC... I guess it means the company is judged to now be a better prospect, and worth more $$ than previously either through a news story, company announcement, or brokers report that highlights previously known aspects of the company that many people had overlooked... sometimes it is an external event, such as Vanadium suddenly going up in price which impacts the company itself.

So if risk is suddenly reduced, profit (or potential profit) increased, milestones achieved etc... they can all contribute to a combined re-rate of the company... other than a brokers report, I am not sure just how that re-rate is "official" ... unless, naturally, the SP goes up from it's current level and never returns..


btw... it works in a similar way down too... so if things go badly, as in Coal mines ... the company's impacted are re-rated down.