Forum Topics EAX EAX Energy Action Ltd General Discussion
StrongflatWite
Added 7 years ago

This is an amazing example of a value trap. On the release of the operational update identifying that the company could not find a buyer and that revenue for the half would be 20% lower than PCP, the share price fell from a close of $0.90 the day before to $0.40, a drop of ~55%!

The share price fall saw the market capitalisation of the company drop ~$13 million from ~$23.3 million to ~$10.4 million. This massive fall in market cap came about with a tiny 8,141 shares trading hands with an aggregate value of $4,623.80.

I wonder where the share price would end up if a fund, or individual with a large position, tried to exit on-market? The table below shows how the trading day unfolded. Tough day for shareholders (and employees and management I imagine).

Time Price Quantity Value
3:45:31 pm  $0.40 700  $280.00
3:43:48 pm  $0.40 2,500  $1,000.00
3:21:41 pm  $0.45 4,000  $1,800.00
3:15:56 pm  $0.47 71  $33.02
3:14:25 pm  $0.44 9,280  $4,036.80
3:13:35 pm  $0.44 3,000  $1,305.00
3:12:12 pm  $0.44 8,850  $3,849.75
3:12:12 pm  $0.43 870  $374.10
2:59:49 pm  $0.39 78  $30.42
2:59:49 pm  $0.39 422  $164.58
2:48:27 pm  $0.39 1,245  $485.55
2:11:19 pm  $0.40 500  $200.00
2:06:45 pm  $0.40 2,000  $800.00
2:03:57 pm  $0.40 2,500  $1,000.00
1:44:25 pm  $0.39 2,333  $909.87
1:44:25 pm  $0.40 2,123  $849.20
1:34:30 pm  $0.38 377  $143.26
1:34:30 pm  $0.39 523  $201.36
1:25:55 pm  $0.38 1,245  $473.10
1:21:33 pm  $0.40 1,800  $720.00
1:14:32 pm  $0.40 800  $320.00
1:12:51 pm  $0.43 550  $236.50
1:12:51 pm  $0.43 800  $340.00
11:44:41 am  $0.45 1,000  $450.00
11:43:57 am  $0.48 1,000  $480.00
11:29:10 am  $0.53 920  $487.60
10:58:28 am  $0.60 800  $480.00
10:02:12 am  $0.70 71  $49.70
10:02:12 am  $0.70 3,000  $2,100.00
TOTAL   53358  $23,599.80

 

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Strawman
Added 7 years ago

Oof.. heck of a sell off

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