Your write-ups are high quality, appreciate the work. Great find. Looks very volitale though as it is very small. Looks like a dream stock for swing traders during the last 3 years. I don't have much experience with such small companies. Are there not bigger fraud risks, etc? What other risks do you see that would kill the thesis? Cheers
Thanks for the kind words, Osten. The swings are mainly due to the stock's illiquidity -- it doesn't trade in size very often, and so when it does you get a big move. Fraud is unlikely as the company's financials are audited by Cooper Parry. Also, I've spoken to customers of theirs and there haven't been any red flags that I've come across. The biggest risks, in my opinion, are 1) that natural gas prices decrease significantly, 2) the spark spread continues to close in the short term, and 3) the economics of the new solar PV segment turn out to be uneconomical.
Your write-ups are high quality, appreciate the work. Great find. Looks very volitale though as it is very small. Looks like a dream stock for swing traders during the last 3 years. I don't have much experience with such small companies. Are there not bigger fraud risks, etc? What other risks do you see that would kill the thesis? Cheers
Thanks for the kind words, Osten. The swings are mainly due to the stock's illiquidity -- it doesn't trade in size very often, and so when it does you get a big move. Fraud is unlikely as the company's financials are audited by Cooper Parry. Also, I've spoken to customers of theirs and there haven't been any red flags that I've come across. The biggest risks, in my opinion, are 1) that natural gas prices decrease significantly, 2) the spark spread continues to close in the short term, and 3) the economics of the new solar PV segment turn out to be uneconomical.