Markox5
I fully agree with your read. While I don't think most institutionals would look at this company on their own, it sounds like Dan has already been talking to some large players. I don't know whether they are garden variety institutionals (i.e., 40 Act companies) or wealthy individuals, hedge funds or just commercial companies looking for positions in this sector. It seems that Dan has told whoever they are about the company, and some of them may have taken relatively minor positions in LGOV. That explains the volume anyways. It also sounds like they were in China at the time of the conference, which was apparently just a couple of blocks from the Xinmau offices, so, Dan had the opportunity to physically show them assets and pitch the company. I would suspect that these potential investors, whether they are standard institutionals or not, even if their corporate charters would let them invest in small companies, won't take a position in companies (especially in Asia) unless they see audited financials and preferably a filing with the SEC, which will give them certain legal protections.
All this is a long way of saying that while I agree with you, if the above is true, then I would speculate that the financial statements may trigger more substantial investments by the bigger investors sniffing around, which, in my opinion, will drive the price to a point that a broader range of smaller investors will take notice, and that, as you note, is likely to be what drives the price up to the minimum for a NASDAQ listing, if that were to ever happen.
This is all of course just my opinion. Irrational exuberance aside, its an incredible lot of speculation based on other people's say-so and information that is still yet to come. I will appreciate everyone's analysis and speculation, though.
TDH |
